The correct option is A I wish I could come, but I don't think I'll be able to.
Since the question specifically mentions that this is a party in the neighborhood that you won't be able to attend, the response needs to be precise yet polite, and also express regret at not being able to attend without sounding rude or specifically talking about personal information. Since Option A) is the best fit for the above criteria, it is the best response. All other options are inappropriate.