In this sentence, the latter (B) is the better choice in meaning and context.
'Ironic' means 'happening in a way that is contrary to what is expected'.
'Caustic' means 'sarcastic in a scathing and bitter way'.
The latter (B) is the better choice in meaning.
'Flair' means 'stylishness and originality'.
'Flare' means 'gradual widening in shape, at the end of a garment'.
The latter (B) is the better choice in meaning.
'Peeling' means 'removing the outer skin of a fruit or vegetable'.
'Pealing' (of a bell or bells) means 'to ring loudly or in a peal'.
The latter (B) is the better choice in meaning.
'Baited' means 'to intentionally make a person angry by saying or doing things to annoy them'.
'Bated' means 'in great suspense'.
The former (A) is the better choice in meaning.
Hence option D is correct.