Answer : 

• d)
  Kindness and care

Introduction:
In the story "The Gift of the Magi" by O. Henry, the peddler is a character who undergoes a significant transformation. Initially driven by greed and a lack of empathy, the peddler's encounter with the kind and caring Edla ultimately leads to a change in his ways.

Explanation:
1. The Peddler's Greed:
Initially, the peddler is depicted as a greedy and selfish individual. He is focused solely on making money and is willing to deceive others to achieve his goals. This is evident when he pretends to be a wealthy man, boasting about his possessions and pretending to be a duke.

2. Mistaken Identity:
The peddler's mistaken identity plays a role in the story, but it does not directly lead to his change of heart. The mistaken identity occurs when Edla's father mistakes the peddler for the duke he was expecting. This misunderstanding sets the stage for the peddler's interaction with Edla and her family.

3. Edla's Beauty:
While Edla's beauty is mentioned in the story, it is not the sole reason for the peddler's change of heart. Edla's kindness, care, and genuine concern for the peddler's well-being are what truly impact him.

4. Kindness and Care:
Edla's acts of kindness and care towards the peddler gradually soften his heart. Despite realizing that he is not the wealthy man her father expected, Edla treats him with respect and hospitality. She offers him food, warmth, and a place to rest. This display of genuine concern for his well-being touches the peddler deeply.

5. The Peddler's Transformation:
As the peddler spends time with Edla and her family, he begins to question his own actions and the emptiness of his previous lifestyle. He sees the happiness and warmth that exists in Edla's home, which starkly contrasts with his own self-centered existence. This realization prompts the peddler to reflect on his own behavior and the choices he has made.

Conclusion:
In conclusion, it is the kindness and care shown by Edla and her family that ultimately leads to the peddler's change of heart. Through their selfless actions, they inspire him to reevaluate his own life and the values he holds. This transformation highlights the power of compassion and empathy in influencing positive change in individuals.