The term "reaction" in the question is not asking for the same possible emotional response (i.e. embarrassment), but rather the response it elicits from the critics. In the passage, the reaction of the critics towards the forgery was praise and acceptance until they found out it was a forgery, then they no longer praised it or accepted it as a great work of art.

In AC C, the diners praise and accept the food that is served to them "until they learn that the master chef is away for the night." This connotes that the diners praised the food because they thought it was prepared by the master chef. Once they learn the food was not prepared by the master chef, their praise ceases. This response is analogous to the art critics ceasing to praise the forgery once they learn it is a forgery.

Schools generally like having at least one academic reference, so even though you graduated in 2016 I don't think it will matter as much, as long as your professors are able to write about how well you did while in school.

You should go ahead and ask your most recent work supervisors for letters as well. Even if they don't know you as well on a personal level, they should be able to speak to your work performance which is very important.