We can see an example of euphemism in option A, where the narrator uses the word "wounded" to soften the term "accident."
We can arrive at this answer because:
In the sentence "I had been wounded, it was true; but we all knew that being wounded, after all, was really an accident " we can see the use of euphemism between the words "wounded" and "accident" as a way of showing a more polished and lighter text, which even the narrator understands is a better option.
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