Answer:
C. confusion
Step-by-step explanation:
Bedlam refers to noisy or chaotic scene, situation, state or place where there is disorderliness, noise, uproar, frenzied activity, and confusion.
In the question, the moment the traffic lights went out, the first reaction of people will be to make noise. As they was nothing or any immediate provision to direct the traffic again, there would be disorderliness, noise, uproar, frenzied activity, and confusion as each driver is trying to find his way.
Therefore, the best word that matches bedlam in the options is C, i.e. Confusion.