Correct Option
The passage explicitly states, "It was pointed out to her that the pavement was the place for foot-passengers." A pedestrian is defined as a person walking, especially in an area set aside for people who are walking. Therefore, the instruction for her to walk on the pavement was directly related to her status as a foot-passenger or pedestrian, aligning with established traffic regulations for designated areas.
Incorrect Options
Options 2, 3, and 4 are incorrect because the lady's attributes of "carrying a basket," being "stout," or being "an old lady" are descriptive elements but do not constitute the reason for her being directed to the pavement. The rationale provided in the passage pertains to the functional designation of urban spaces for different users (pavement for foot-passengers, road for traffic), not personal characteristics or possessions.