The narrator decides to transform his attitude toward the situation at the Paragraph 2
In Paragraph 2, the narrator describes the initial challenges they faced when they moved to their new school. They mention feeling sad and homesick because no one at the new school knew them and the kids were polite but not treating them like a good friend.
It is in this paragraph that the narrator makes the conscious decision to change their attitude and work hard to improve their situation. This change in attitude is the turning point in the story leading to the narrator's determination to overcome their initial difficulties and eventually run for freshman class president.
Therefore, the Option B is the most correct option.