The correct answer is B. Indirect characterization
Step-by-step explanation:
When authors use indirect characterization they only explain the actions, words, and general behavior of characters to show the reader how the characters are, rather than directly describing the characters from their perspective (direct characterization). According to this, the narrator of The Canterbury tells will use indirect characterization because he will only explain the "words and dealings" of the characters through the characters "very phrases as they fell", which shows the narrator will not describe the characters directly but let their words and actions show how they are.