The correct answer is: Option C. The chief of police loses his job and the respect of his family after his lies and criminal connections are exposed.
While a tragedy may be considered as any story that invokes sadness on the reader or listener, it is in fact the focus on a main character in the plot and the actions that caused them to befall in misery.
All of the options may seem tragic, but the majority of these misfortunes are caused by external factors that the characters did not necessarily brought to their lives, whereas in option C, the protagonist of the story is responsible for the actions that caused his plight.