THE BEST CHRISTMAS PRESENT IN THE WORLD

Jim's first reaction to the 'Happy Christmas' by the Germans was one of

Schnapps is

Sausage is

As I was speaking her eyes never left my face. I opened the tin box and gave it to her. That was the moment her eyes lit up with recognition and her face became suffused with a sudden glow of happiness. I explained about the desk, about how I had found it, but I don't think she was listening.
1. The speaker of the above passage is
(a) the author (b) the narrator
(c) Jim (d) Hans Wolf
2. The lady being talked to, is
(a) Connie (b) the matron
(c) Hans Wolf's wife (d) none of the above three.
3. The lady was not listening because
(a) she was sick (b) she was deaf
(c) she was too happy (d) she had recognised the speaker

The narrator bought the desk from a junk shop because

"I began work on it on Christmas Eve". In the above sentence 'it' stands for