A. Our local metropolitan newspaper is called "The Houston Chronicle."
This is correct because since the newspaper is not a book, it does not get underlined, it instead receives quotes. The is capitalized because it is the first word in the sentence and Houston and Chronicle are capitalized as well, because they are the title of a newspaper and Houston is equally capitalized because it is the name of a location. Houston is a large, metropolitan city in Texas. The Houston Chronicle is the largest daily newspaper in Texas.