The correct answer is C. Gatsby tries and fails to recreate the past.
The plot development of Gatsby's winning Daisy's affection initially creates irony in the outcome of the novel. This is because, despite his efforts and temporary success, Gatsby ultimately fails in his attempt to recreate the past. Gatsby is driven by his love for Daisy and his desire to relive their past romantic relationship. However, he fails to recognize that time has changed both of them, and their past cannot be fully recreated.
The irony lies in the fact that despite Gatsby's wealth, extravagant parties, and his efforts to win Daisy over, he cannot sustain their rekindled relationship. The reality of the situation is that Daisy is unable to fully commit to leaving her husband, Tom Buchanan, and embracing a future with Gatsby. The past Gatsby longs for remains out of reach, leading to a tragic outcome.
The other options mentioned are not directly related to Gatsby's irony:
Daisy's not attending Gatsby's funeral is a consequence of his death and the crumbling of their relationship. However, it does not directly address the irony of his failed attempt to recreate the past.
B. Tom confronting Gatsby about the affair reveals the conflict between Gatsby and Tom. However, it does not specifically highlight Gatsby's irony.
The story of Daisy's infidelity with Gatsby is part of the novel's plot. However, it does not directly address the irony of Gatsby's unsuccessful attempt to recreate the past.