The correct answer is D. Peasants more readily accepted unpleasant facts of life, while the middle class tried to deny them.
Indeed, peasants in Czarist Russian were barely above slavery and suffered greatly a life of poverty, exploitation and deprivation. The reason why Gerasim is able to feel compassion for Ivan is that as a peasant he has lived all his life in these dark conditions and thus can feel empathy and compassion for Ivan, who finally realizes how superficial and fake his life has been until now; disconnected from the grim realities of the human condition, and oblivious to the suffering of most of his fellow countrymen.