No, I think the answer should be (c). The choices should not be capitalised. The sentence as a whole doesn't read entirely correctly to me.
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avid learnerWhich preposition is the correct one for the blank?The original sentence is faulty and none of those answers makes sense.
avid learnerThe children's failure in having a wholesome family is father's greatest disappointment in them."failure to have ...". Also, it seems to me that logically "wholesome families" should be plural. I mean, the children aren't expected to have one family between them, are they? I would also turn the sentence around: