C. Where did Larry find his bike? He found it in ... 1) his house. 2) his garden. 3) William's garden.

Краткое пояснение: В тексте говорится: "When he came to Larry's house he said that Larry's present was in the garden. Larry saw his bike behind the tree." Это означает, что подарок (велосипед) находился в саду.