Final answer:
Katherine believes that the newsies are challenging the powerful newspaper publishers of New York and stands optimistic about their chances of triumph.
Step-by-step explanation:
Katherine believes that the newsies are attempting to take on the powerful newspaper publishers, referred to as the kingmakers of New York, and she does indeed think they have a chance at success. This aligns with option C: Katherine thinks they are trying to take on the kingmakers of New York and believes they have a chance. The context of this belief is rooted in a historical setting where newsies, or newspaper vendors, are fighting for fairer working conditions and the right to earn a proper living.