Some dark night Shelly said, "I hate squirrels," but really she loved them. Carol said, "They smell," but really, she loved them too. Both of them thought that squirrels were pretty cute.

A) first person
B) second person
C) third person
I think C

I agree.

You are correct! The correct answer is C) third person.

In the given scenario, Shelly and Carol are referred to using third-person pronouns "she" and "they" respectively. The narrator is speaking about their thoughts and feelings from an external perspective. This usage of pronouns and the narration style indicate that the perspective being used is the third person.