To understand the meaning of the word "chafe" in paragraph 16, we need to consider its context, which often relates to irritation or annoyance. Both quotation B ("Mister Toussaint began to suspect that the pouch was some kind of stupid Internet of Things prank") and quotation C ("LOONY GOONY's singing voice really got on Mister Toussaint's nerves") convey a sense of irritation or annoyance.
Therefore, the best answer would be:
Both B & C