Which element in this passage from "The Nose" is typical of the genre of magical realism?

Read this passage:
How great was Kovaloff's terror and astonishment when he saw that it was his own nose!

At this extraordinary sight, everything seemed to turn round with him. He felt as though he could hardly keep upright on his legs; but, though trembling all over as though with fever, he resolved to wait till the nose should return to the carriage. After about two minutes the nose actually came out again. It wore a gold-embroidered uniform with a stiff, high collar; trousers of chamois leather; and a sword hung at its side. The hat, adorned with a plume, showed that it held the rank of a state-councillor. It was obvious that it was paying "duty-calls." It looked round on both sides, called to the coachman "Drive on," and got into the carriage, which drove away.
- Nikolai Gogol, "The Nose"

A. Kovaloff is surprised but doesn't question why the nose is able to walk around.
B. The nose is dressed as a heroic figure and is really the protagonist of the story.
C. The nose doesn't stop to speak with Kovaloff but simply drives away quickly.
D. Kovaloff is jealous of the nose and wants to take its place as state-councillor.