B)
I tend to read older classics, which you can download for free from the Gutenburg Project site. For those larger .TXT files (as well as .PDB, .PRC, .TXT, .RTF and .HTML), UBook is a great free reader. It opens much larger files that Pocket Word, it bookmarks where you left off, and has a number of font and appearance options.
You can find the reader at:
http://www.gowerpoint.com/