The police were called to the scene of the altercation, but by the time they arrived, both sides were seated and calm

A. Accident
B. Argument ***
C. Fire
D. Investigation

The answer to the question is B. Argument.

To arrive at this answer, we can analyze the information provided in the sentence. The sentence states that the police were called to the scene of an "altercation." An altercation refers to a heated or angry confrontation between two or more people. However, it also mentions that "both sides were seated and calm" when the police arrived. This suggests that the argument had already subsided and that those involved had reached a state of calmness.

By eliminating options C and D (Fire and Investigation), we are left with options A (Accident) and B (Argument). However, the sentence does not mention anything about an accident occurring, leading us to conclude that the correct answer is B. Argument.