C. Flashback
A flashback is when the speaker interrupts the story to tell about an event that has previously happened. The context clue that tells you a flashback is about to occur is the first sentence when the narrator says "he thought of that memorable Halloween when he was a child." This tells us that the narrator is about to tell us what happened during that memory Raymond is laughing about.
Alliteration is the repetition of the same sound at the beginning of a group of words. Characterization is the way the author presents a character to the reader. The climax is the turning point in the story.