Answer: I would go with "O knows that he has done wrong but is too stubborn or afraid to admit it to the village."
Step-by-step explanation:
This is just based off of what you provided and it seems like its the best answer choice would be B, because of the fact that he was "inwardly repentant" but did not want to show that to the village. Is he necessarily stubborn or afraid to? I don't know, but the other choices don't seem to be as good of a choice.