The word "turmoil" in the sentence refers to a state of confusion, disturbance, or disorder. The sentence implies that the town was experiencing such chaos or disturbance that the scheduled dance event had to be cancelled.

Option D, "state of confusion," directly aligns with the meaning of "turmoil" in the context of the sentence. It accurately describes the unsettled and confused state of the town that led to the decision to call off the dance.