Question

the author is pointing out the hypocrisy of the system in which a bed, possibly a family heirloom predating the revolution, can be used as proof of disloyalty to the government. the gossiping neighbors are another element of the system that expected conformity, and where mutual policing for antigovernment activity was common.
epilogue
many friends have asked me why, after all i went through, i did not hate chairman mao and the cultural revolution in those years. the answer is simple: we were all brainwashed. to us chairman mao was god. he controlled everything we read, everything we heard, and everything we learned in school. we believed everything he said. naturally, we knew only good things about chairman mao and the cultural revolution. anything bad had to be the fault of others. mao was blameless.
when i started to write this book, i asked an yis mother if she hated mao. . . . \i didnt hate him,\ she told me. \i believed that the cultural revolution was necessary to prevent revisionism and capitalism from taking over china. i knew that i was wronged, but mistakes happen under any system. if the country was better for the movement that persecuted me, i was still in favor of it. it was only after maos death that i knew i was deceived.\
why did the narrator believe only positive things about the cultural revolution?
she was brainwashed by maos propaganda.
she and her family were reactionaries.
her house was never ransacked by the red guard.
she welcomed the capitalist reforms of the period.

Explanation:

The text clearly states "We were all brainwashed. To us Chairman Mao was God. He controlled everything we read, everything we heard, and everything we learned in school. We believed everything he said. Naturally, we knew only good things about Chairman Mao and the Cultural Revolution." This directly supports the idea of being brainwashed by propaganda.

Answer:

She was brainwashed by Mao's propaganda.