Which is the right way to capitalize the words in this sentence?

People who live in alaska have heard grandma jones' story called the bear that got away.

Select one:
a. People who live in Alaska have heard Grandma Jones' story called The Bear That Got Away.
b. People who live in Alaska have heard grandma jones' story called the bear that got away.
c. No changes--the sentence is perfect.
d. People who live in Alaska have heard grandma Jones' story called The bear that got away.