What do the phrases "sleazy indian suits," "cowboy suits," and "cheesecloth dutch maiden dresses" reveal about the setting?

The correct answer is that - it reveals the cultural context by discussing popular culture. The popular culture in this excerpt is to dress up like Native Americans, or cowboys, etc. which explains a lot about the culture context in the text. The excerpt doesn't really reveal anything else but the cultural context, which is why A is the correct answer.