Explanation
Correct answer: C.
Choice C is the best answer because as used in the text, "invent" most nearly means create or make up. The text begins by stating that Sara likes to tell stories and thoroughly enjoys telling them. The rest of the text describes how she looks and acts when she invents, or creates, "wonderful things" in her stories ("what she told").
Why the other choices are wrong
Choice A
Choice A is incorrect. Although the text suggests that Sara makes up "wonderful things," nothing suggests that she does so to mislead, or intentionally deceive, others; there is no reason to assume that Sara’s listeners don’t know that she’s creating the stories she shares.
Choice B
Choice B is incorrect because nothing in the text suggests that Sara is disguising, or trying to cover up or conceal, "wonderful things" when she tells stories; rather, she is creating them and presenting them in ways that make them "lovely or alarming" for her listeners.
Choice D
Choice D is incorrect because nothing in the text suggests that Sara is discovering, or unexpectedly finding, "wonderful things" in the stories she loves to tell; rather, that she is making things up as she tells the stories.