Final answer:
Option C correctly summarizes the paragraphs with Madame Loisel and her husband buying a replacement necklace and falling into poverty for ten years.
Step-by-step explanation:
The best summary of paragraphs 1-16 is Option C: After Madame Loisel loses her friend's diamond necklace, she and her husband buy a new one to replace it. The new necklace is very expensive, and Madame Loisel and her husband go into poverty to pay off the debt to the jeweler, which takes them ten long years. This summary accurately captures the main points without including any misleading information about the financial arrangements made for the replacement or implying moral judgments not present in the text.