The passage implies that:
The cantareswere often recited to audiences
The implication is that the cantares were more often recited in public than read in private. Choice A is incorrect. The romances combine lyricism with narration taken from the dramatic high points of the epics; nothing suggests that they are concerned with peace rather than war.
Notice that defeat is mentioned as one of the moments captured by romances.
Eliminate choice A. The passage does not refer to Moorish influence on any of the genres, so choice C can be eliminated. Choice D is a reversal of what the passage suggests. Eliminate choice D.