Where should there be a paragraph break in the following text?

I walked into the old abandoned house for the first time. The floor creaked with each step kicking up dust. A chill went up my spine, but something kept pushing me forward until I found a small locket. (1.) And not just any locket. The locket I lost six years ago at my uncle’s farm. (2.) I was playing in the fields behind the barn when I ran into a cute little fox. (3.) I did not know foxes could be mean. It attacked me and when I ran I lost the locket, I assumed forever. I guess I was wrong.

A. 3.
B. 1. and 2.
C. 2.
D. 1.

B. 1. and 2.

The correct answer is D. 1.

A paragraph break should be placed before the sentence "And not just any locket." This allows for a new paragraph to begin and separates the sentence from the previous information about entering the old abandoned house.