The correct option is B In
Here, 'in' is correct because it is used to describe physical surroundings, here it is the house.
'Of' is incorrect because it implies belonging to somebody; relating to somebody.
'For' is incorrect because it is used to show who is intended to have or use something or where something is intended to be put.
'On' is incorrect because it implies in or into a position covering, touching or forming part of a surface.