For question number 1, the sentence that most likely indicates a tragic resolution in the development of the story is:
a. Her favorite toy fell into the trash can...
Actually this is the only option which produces a sad ending to an story, the other options produce an opposite effect, they are all happy endings.
For question number 2, the word that provides an appropriate connotation of the word fire as it is used in the sentence is:
c. Courage
the expression "by a fire withihn his heart" is actually referring to the motivation needed to achieve a goal, therefore the best option is the word courage.