The correct answer is B. Squeaky’s thoughts about her own actions
Step-by-step explanation:
In literary works, characterization refers to the way the author uses different elements to let the reader know the characters. In the case presented, characterization about Squeaky occurs mainly through Squeajy's thoughts about her actions, this can be explained as the excerpt presents Squeaky' thoughts about her attitude and actions in the street as she explains "I’ll high-prance down 34th street like a rodeo pony to keep my knees strong even if it does get my mother uptight".
This excerpt shows the reader Squeaky is independent, determined and even a bit headstrong because she keeps prancing like a pony even if her mother does not like this. Thus, characterization occurs through the main character's thoughts about her actions (Option B).