Although stereotypes can be linked to prejudice as described in A & C, I don't think this is what the question is after because it specifies "literary stereotype." In literature, stereotypes can be used to create tension. They provide a character with an expected behavior, the stereotype, and if the character doesn't follow that behavior it is interesting because it is unexpected.
So I like answer B the best because it creates conflict with character expectations.
By the way, with answer D, good, evil, protagonist or antagonists are archetypes, not stereotypes.