The Hobbit

Why does a conflict arise between the dwarves and the goblins?

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Why does a conflict arise between the dwarves and the goblins?         A. The dwarves are angry that the goblins break their promise to let them sleep in the cave.       B. The dwarves think that the goblins helped Smaug steal their treasure hoard.       C. The goblins want to punish the dwarves for being friends with Gandalf, whom the goblins hate.       D. The goblins recognize that the sword Thorin carries is one that has been used to kill many of their kind.
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I think the closest would be: 

D. The goblins recognize that the sword Thorin carries is one that has been used to kill many of their kind.

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