Oh Reginald~(3) The punctuation at the end of each quotation is inside the quotation marks.
I've always thought this is a terrible rule. It's also an American invention; as I understand it, the original British rule (and a newer American rule, naturally) is logical quotation: when the punctuation at the end of a quote occurs at the end of the containing sentence, only put it on the inside if it matches. Otherwise you end up with nonsense like this: Did he tell me "turn the oven off?"
It also makes more sense when quoting short phrases or parts of sentences, since you don't end up sticking end-of-sentence punctuation where it doesn't belong: He called evolution "just a theory".
Wikipedia's manual of style agrees B)