The correct answer is C.
After Irawaddy gives birht to an albino child, everyone is shocked. People in town finds out and go to the see the "local curiosity." So Nathan decides that they would hold the traditional ceremony to name the child, so as to keep onlookers away.
During the ceremony, Kali sees the baby and points out his abnormal characteristics. However, Selvam becomes the voice of reason and assures her that there is nothing wrong with being different, that is just a matter of getting accustomed and that no colour is better than the other.
