[Stolen Bicycle] Jason Borrowed His Friend Sabrina's Bicycle

Multiple Choice

[Stolen Bicycle] Jason borrowed his friend Sabrina's bicycle. She told him that she was happy to let him to use it for free, but that she would appreciate him taking good care of it. Jason said nothing in reply. Jason lived in a high crime neighborhood, but he left the bicycle unlocked on his deck anyway. The next morning, he discovered that the bicycle had been stolen. Jason told Sabrina that he was very sorry about the bicycle. Sabrina told him that she expected him to pay for it. Jason refused on the basis that a thief took the bicycle. Jason told Sabrina that he believes he knows the identity of the thief and that since only Sabrina has the right to sue to recover the property, he has no further responsibility.
-Jason stated that he owes Sabrina nothing and that only Sabrina has the right to take legal action against the thief. Which of the following statement is true regarding Jason's statement to Sabrina?

A) He is correct on all counts.
B) He is correct that he has no liability to Sabrina, but incorrect that only Sabrina may take legal action against the thief.
C) He is incorrect that he has no liability to Sabrina, but correct that only Sabrina may take legal action against the thief.
D) Only if he can identify the thief beyond a reasonable doubt is he correct that he has no further duties to Sabrina, because only Sabrina has the right to take legal action against the thief at that point.
E) He is incorrect because he has the right to take legal action against the thief, and Jason's conduct indicates that he has legal liability to Sabrina.