"Torture and kill someone of our choosing." OUCH! And how would Bern NOT get marks for that? And since it's something that's being seen by "clients," it would be prime blackmail material too.
So far we have...
1.) Hurt yourself psychologically, and maybe physically (depending on how rough the clients like to "play.") As well as hurt your reputation, and destroy your virtue.
2.) Hurt yourself physically, and possibly cripple yourself. (We do not know if the healers would restore the eye afterwards or if she'd remain permanently half-blind.)
3.) Hurt yourself psychologically and destroy your reputation, as well as kill a defenseless individual through torture.
Bonus option: Ignore the "opportunity" and prepare to spend a good decade in jail trying to erase marks through matches at D rank.
There is simply no parallel in real world history for the barbarism on display here.
First, I actually like that Option C wasn't a predictable (Bloody Mary) choice, or a 'here is a special task we want you to do' plot. Woot Brion.
Depending on the person, these are all terrible things, but the sorts of things you hear people doing in terrible times. Sometimes people will sacrifice their self value. There are a lot of people who turn to prostitution/selling their bodies just due to poverty or for protection in jail lets say. Other people will risk injury or actively choose injury (such as selling an organ) to take care of their families. The last is the amoral one, but for someone who doesn't have morals or empathy for others... or who thinks they don't (I could see someone finding torture harder than they expected. But then there is Millgram's experiment.)
This is an abusive situation, but it's also a test of what is important. Is your sexuality important, is your body, are you willing to hurt others to help yourself?
The big question is whether they'd heal your eye. I imagine you'd have to pay for the healing, just like you pay for most things. Though perhaps the arena has a healer on staff to help injured fighters recover so they can fight more. After all, it's how the arena makes it's money too.
I still find my main grievance is how shocked Polly is. Polly is essentially a cop. The Arena is the local for profit jail/punitive system. Cops are very aware of what happens in jails, because there is tons of talk on the street about what happens inside. She'd hear folk talking at the bars regularly about how it works. She'd also have been sure to prep Bern better, even as a sometime spectator.. knowing that it's how you fight as much as how well that impacts a fighter's popularity. (Ie, all the top ranked fighters are flashy/aggressive, while equally skilled but boring ones are lower ranked.)
Polly had a plan, she was exactly the sort who'd know what sort of stuff goes on in the arena. Her constant shocked expressions and Bern's passivity coming in are out of place. I suspect webcomics and the stories don't get an editor though, so it's all forgivable
Now, where this might work is if Polly is working another angle, and is actually secretly gathering information about abuses in the arena that go beyond the law after the scandal with the last overseer, and thus is playing up her innocence. I don't imagine that's what's happening though. Still, a resolution of her clueless behavior.
Working around that issue, I find the test posed by the warden interesting. We know May sacrificed a finger and would have sacrificed a breast for Bern. I'd think given her presentation she might choose to lose an eye. That said, and horrific as a night of unwanted (and likely unpleasant) sex would be, it would likely leave her in a better position to survive and thrive and thus exit the arena. I don't see Bern as she's been portrayed choosing in however, nor torturing someone. Thus B or D would be my guess.