I would go for D,
Aho, a Kiowa matriarch, held festivals in her home, they featured the preparation of great quantities of ceremonial food, the wearing of many layers of colorful clothing adorned with silver, and the recounting of traditional tribal jokes and stories.
(A) Aho, a Kiowa matriarch, held festivals in her home, they featured---they has no reference
(B) Festivals were held in Aho, a Kiowa matriarch’s home, which featured--- here we have to use 'that' clause and moreover 'which'
...
Aho, a Kiowa matriarch, held festivals in her home, they featured the preparation of great quantities of ceremonial food, the wearing of many layers of colorful clothing adorned with silver, and the recounting of traditional tribal jokes and stories.
(A) Aho, a Kiowa matriarch, held festivals in her home, they featured---they has no reference
(B) Festivals were held in Aho, a Kiowa matriarch’s home, which featured--- here we have to use 'that' clause and moreover 'which'
...