Answer:
C.
Step-by-step explanation:
Finishing the story, we see that the "weavers" weren't honest, and therefore that cancels the option of A. They certainly are not magical so that cancels B. They are not spies, I believe they are self-employed, so the only option is C, which is true. The excerpt also includes the "They let it be known" and not "It was known".
Hope this helps! :)