The answer is B: he has actually become a bug.
In these opening lines from The Metamorphosis, Kafka presents us with one of his most memorable characters, Gregor Samsa, who one day, for no apparent reason, woke up transformed into a bug. As the story unfolds, the reader and the main character have to come to terms with Samsa´s inadequacy and his feeling of horror at his new bodily form and what that causes around him.