The correct answer to the question is:
B. source monitoring
Explanation:
1. Source monitoring refers to the process of determining the origin of memories, whether they are from one's own experiences or from external sources.
2. In the context provided, the ability to utilize context and sensory clues to decide whether something occurred relates to source monitoring.
3. Reality monitoring involves distinguishing between real memories and imagined events, but in this case, the focus is on identifying the source of memories.
4. Misinformation effect and source-monitoring error are related concepts but not specifically addressing the process of using context and sensory clues to determine the source of memories.
Therefore, in the given scenario, the most appropriate answer is B. source monitoring.