Step 1: Concept:
This question assesses knowledge of the first female Nobel laureate in Literature.
Step 2: Explanation:
The timeline of Nobel Prize in Literature recipients is as follows:
\[\begin{array}{rl} \bullet & \text{Selma Lagerlöf (Sweden) won in 1909, becoming the first woman to receive the award. [8, 9, 10, 12, 13] } \\ \bullet & \text{Grazia Deledda (Italy) won in 1926. } \\ \bullet & \text{Pearl S. Buck (United States) won in 1938. } \\ \bullet & \text{Toni Morrison (United States) won in 1993. } \\ \end{array}\]Therefore, Selma Lagerlöf was the first female Nobel laureate.
Step 3: Answer:
The answer is Selma Lagerlöf, option (B).