Answer:
C. The setting reveals that the village population is small and maintains a country lifestyle.
Step-by-step explanation:
The short story The Lottery by Shirley Jackson tells the story of an age-old tradition that a village kept despite its barbaric nature. This practice leads to the unconventional and death of a person per year.
The given excerpt from the story reveals the history of the practice of the "black box". And even though the narrator states that the population was "likely to keep on growing", the total was not that much, just "more than three hundred". Therefore, the setting of the story from the given passage can be easily inferred that the village is still a small and rural setting, which will obviously also maintain a country lifestyle.
Thus, the correct answer for the question is option C.