The correct answer is "grandpa believes that it is time to begin preparing for his death".
Explanation:
- Grandpa wasn't upset because of the money stealing, instead he laughed of the possibility of having his shoes stealed without noticing it.
- For the same reason, mom did not offend grandpa, but scolded him and he found it funny.
- The last sentence is also wrong; mom became angry because grandpa wanted to wander in the streets with too much money with him.
Therefore, grandpa was, as he said, saving money for his funeral, since he is already old. However, he did not mind his money was used to buy items in the grocery, since this way he was being useful to his family.