Final answer:
The idiom 'sailing close to the wind' indicates a bad financial situation created by an implied dependency on alcohol, causing the individuals to manage their finances with very little margin for error. The correct option is C. To explain that bad habits are creating a bad financial situation
Step-by-step explanation:
The role of the idiom in the sentence 'because of the jug we were always sailing pretty close to the wind' is to explain that bad habits are creating a bad financial situation. This idiom conveys the struggle the individuals face due to the financial burden imposed by supporting 'that jug,' which likely refers to an alcohol addiction. Idioms like 'sailing close to the wind' are used metaphorically to describe a situation where there is little room for error or misfortune before disaster happens, in this case, financial ruin.