Doubt in Aromatic Hydrocarbons

#1

I am getting answer as (C) but key given is (B).

#2

See lone pair of Nitrogen atom are in resonance with O2 both side that decreases the availability of lone pair. Therefore o/p directing of CH3>Nitrogen group.

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#3

So if there weren't any O2 groups then would o/p directing of Nitrogen group > CH3 ?

#4