What type of literature was known for its lurid tales of murder and the supernatural in Britain?

Penny dreadfuls are a specific genre of literature that emerged in 19th-century Britain, characterized by their sensational and often macabre narratives. These publications were typically inexpensive, sold for a penny, and featured thrilling stories about crime, murder, and the supernatural. The term "penny dreadful" itself reflects their cost and the somewhat morally questionable content that appealed to the reading public at the time.

The popularity of penny dreadfuls can be seen as a response to the curious fascination with darker themes in society, as they often provided escapism through tales of horror and adventure. Noteworthy examples include serialized stories about notorious criminals or ghostly encounters, which both entertained and thrilled their readers.

The other options are distinct in nature: novels of virtue focus on moral lessons and virtuous characters, poetry tends to explore emotional and artistic expression rather than horror, and science fiction generally deals with futuristic or fantastical elements rather than the supernatural as commonly depicted in penny dreadfuls. Hence, the identification of penny dreadfuls as the genre known for lurid tales is accurate and reflects the specific characteristics that defined this type of literature during that period.