The options for this question are:
A. They establish the mournful mood.
B. They establish the hostile mood.
C. They establish the austere Puritan setting.
D. They establish the spiritual Puritan setting.
Answer: C. They establish the austere Puritan setting.
Explanation: In the given excerpt from "The Scarlet Letter" by Nathaniel Hawthorne, we can see the description of a place, with women and men dressed in certain way (with sad-colored clothes, steeple-crowned hats, and the women with hoods or bareheaded), all this description corresponds to an austere Puritan setting. The Puritans are people who have an strict moral, usually very religious, and austere means that it is not welcoming, it is severe and simple.