We are asked about the organization of the first paragraph of the passage. When we break this paragraph down, we see that it first introduces three kinds of studies that have been performed on Byron - the examination of Byron's psychology/life, the study of Byron as an important figure in the history of ideas, and the study of Byron's poetry. The passage then elaborates on this last type of study.
Answer choice (C) states that "several categories are mentioned and then one category is discussed in some detail" in the first paragraph of the passage. We see that this matches our breakdown exactly, and is therefore correct. The categories mentioned refer to the three types of studies on Byron, and the one category discussed in some detail refers to the study of Byron's poetry.
Answer choice (B) states that "a number of theories are discussed and then the author chooses the most convincing one" in the first paragraph. This is wrong for two reasons. First, the opening paragraph does not discuss any theories, it merely discusses categories. Second, the author does not argue that the category most elaborated on (studies of Byron's poetry) is the best or most convincing one. In fact, the author discusses the limitations of this category. Therefore, answer choice (B) is incorrect.
Does this make sense? Please let us know if you have any additional questions!