Answer: The statement that it is true about paragraph B is There is an error in sentence number 1.
There is a spelling mistake in the verb studyed in Sentence one of paragraph C.
If the verb ends with a consonant followed by -y, then the -y plus -ed becomes -ied by adding an conjugating word.
The words needs to be added like the past test -ed. Thus, the correct sentence will be Gus and Frieda studied the situation then got an idea.