Answer:
Her abuelito's death reminds her that her father could die, too.
Explanation:
Sandra Cisneros' The House on Mango Street from which the short narrative "Papa Who Wakes Up Tired in the Dark" is taken from is about a young girl Esperanza. Her and her family's life in Chicago in Mango Street and her eventual maturity covers the whole book in short stories/ narratives.
In the part "Papa Who Wakes Up Tired in the Dark", Esperanza recalls how her father had woken her up to tell her about her abuelito/ grandfather. She recalls seeing her "brave Papa" cry, a new side of his father that she had never seen or observed. This train of thought led her to think about her own father's death, which made her decision to "hold my Papa in my arms. I hold and hold and hold him." It reminds her that her own father could die too.
Thus, the correct answer is the third option.