Final answer:
Peers are influencing how James thinks about what is normal behavior.
Step-by-step explanation:
The statement that best describes what is occurring in this situation is C. Peers are influencing how James thinks about what is normal behavior. Even though James has never had alcohol, he believes his friends when they tell him that almost everybody at their school drinks regularly. This shows that his peers are influencing his perception of what is considered normal behavior among their schoolmates.