The correct option is B falls
Here, 'falls' in simple present tense is correct because it is used with 'mental action' verbs like belief (here).
'Is falling' is incorrect because present continuous tense is used when an action is going on as we speak. Example: At this moment, the rain is falling very heavily.
'Was falling' in past continuous tense is incorrect because it is used to indicate an incomplete action of the past. Example: The aircraft was falling at a great speed.
'Fall' does not fit in the sentence and is thus, incorrect.