1. The preacher fears His wifes.
Fears of wifes does not has literal meaning, rather than he just want his wife to be fulfilled.This can be seen by his efforts to keep up with all of his wife's demand despite his various obligations that took almost double of work hours on what average villagers do.
2. The answer is C. circumcision
It's a traditional believe that people around that village held according to their own culture. Any other cultures beside that village does not really see this kind of dream that way.
3. The answer is B. Passive.
Passive sentence could be characterized by auxilary verbs + Verb 3.
We can see this on . . . . are kept in . . . .
If this type of sentence is written in active it should be somthing like:
We keep the diamonds at . . . .