A Stout old lady was walking with her basket down the middle of a street in Petrograd to the great confusion of the traffic and no small peril to herself. It was pointed out to her that the pavement was the place for foot-passengers, but she replied ‘I'm going to walk where I like. We've got liberty now.’ It did not occur to the dear lady that if liberty entitled the foot-passenger to walk down the middle of the road it also entitled the taxi-driver to drive on the pavement, and that the end of such liberty would be universal chaos. Everything would be getting in everybody else's way and nobody would get anywhere. Individual liberty would have become social anarchy.
The lady refused to move from the middle of the street because

Correct Option (B)

The lady's statement, "I'm going to walk where I like. We've got liberty now," directly indicates her belief that liberty grants her the right to act according to her personal preference, irrespective of established rules or public order. This reflects an interpretation of liberty as an absolute entitlement to individual action, without considering its societal implications or the rights of others.

Incorrect Options:

• Option (A) is incorrect because the passage provides no information to suggest that her refusal to move was motivated by a lack of fear. Her actions are presented as a consequence of her understanding of liberty, not her courage.
• Option (C) is incorrect as the text does not imply any dislike for walking on the pavement. Her reason is explicitly stated as her perception of newly acquired liberty.
• Option (D) is incorrect because the lady's response is assertive and clear, indicating a firm, albeit misguided, conviction rather than confusion. The passage describes her as causing "great confusion of the traffic," not being confused herself.