Final answer:
In 'A Christmas Carol', the setting is characterized by a cold, threatening and gloomy atmosphere, particularly during the character's snowy night walk home, which aligns with option A: Cold and gloomy.
Step-by-step explanation:
The excerpt from A Christmas Carol depicts a setting that is characterised by a cold, threatening and gloomy atmosphere. The narrative emphasizes the harsh conditions of the weather and the sense of dread and fear experienced by the character during their walk home amidst a snowy night. Phrases such as 'fearful shapes and shadows', 'dim and ghastly glare', and 'cold as Arctic air' further contribute to a setting that is best described by the phrase Cold and gloomy, making option A the correct answer.