The answer is B. "This paper looks to me as if it KNEW what a vicious influence it had!"
The first person omniscient narration is a narrative form where the person who tell the story also participates, he/she/it can also say what the other characters thinks or feels, this way the reader can have a more objective view of the story, as we do not only one-point view of but several thoughts and feels from different fonts in the narrative.
Taking this into account the statement should include the feeling of other character in order to be this narrative.