先肯定答案（A)是正确的.理由如下：
With all the novels he was interested in borrowed 中有两个关键问题要注意的：
A/ he was interested in 是 novel 的定于从句,引导词 that 省略；
B/ With all the novels he was interested in borrowed 是一个带有 with 的分词短语做独立主格.不妨这样去掉定语从句看一看：With all the novels borrowed,novels 与动词 borrow 的语态关系是被动的,所以用了borrowed.