Just when everybody had given up hope, the fishermen came back, seven days after the cyclone.
a feeling that something good will probably happen
thinking that this would happen (It may or may not have happened.)
stopped believing that this good thing would happen
wanting something to happen (and thinking it quite possible)
showing concern that what you say should not offend or disturb the other person: a way of being polite
wishing for something to happen, although this is very unlikely
Explanation
Option C is correct because the phrase 'given up hope' in the sentence means that the people had lost faith or stopped believing that the fishermen would return safely. Therefore, it directly matches the meaning 'stopped believing that this good thing would happen.'