The event that afflicts Jack and increases the tension of the story is the moment he realizes that Kitty doesn't see Mrs. Wessington's rickshaw, as shown in option B.
Jack is distressed because he is being tormented by a ghost. He's on the verge of madness with the whole situation and badly needs help getting out of it. The best person to help him is Kitty, but for that, she needs to see Mrs. Wessington's rickshaw, but she can't and thinks Jack is just crazy and making up a story.
This increases the tension of the story because it makes the reader think that Jack is alone with his problems.
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