Answer:
B. A character who plays a trick.
Step-by-step explanation:
According to the excerpt given, the narrator describes his encounter with a strange being who called him and changed from a monster dragon to a man who was bowing to him. He described the man as wearing a crown in the shape of a dragon's head and his dress patterned with shells.
The element of a folktale that is displayed in this excerpt is a character who plays a trick because it is certain that the dragon changed to a man but still retained some aspects of himself in his new form and his plan was probably to trick the narrator.