In chapter 14, when Henry awakes he first thinks he is a charnel place because A. the sleeping men around him look dead.
For the second question, C. Courage doesn't matter is the option that is not a theme of "The Red Badge of Courage". The story argues that courage does matter, but how one defines courage is the real point. Henry believes in an old romantic sense of courage that he quickly finds is not realistic. He later learns that his mother's sense of courage, owning up to your responsibilities even if it means your life, is a more true version of courage.