I believe the correct answer is D. Almost suspended, we are laid asleep/ in body, and become a living soul.
It seems to me that what the author is trying to say here is that when your mortal body dies, you still continue living as a soul - your soul is the part of you that can never die, and is thus immortal. Wordsworth was a Romanticist, and authors of this era believed in many supernatural things, so why not immortality too?