The correct answers are: He treats it as a breach of warranty only; He has destroyed the carpet in anger; He accepts the carpet.

The store cannot make Raymond take a carpet of the wrong colour unless he now does something to prejudice his position, and so it does not matter how suitable the colour might be, nor the difficulty that the store is having in supplying the right colour.

Raymond can treat it as a breach of warranty instead of a condition and therefore seek damages instead of rejecting it, or simply accept it as it is (e.g. by keeping it for several months). If he does something with the carpet so that he is unable to return it, he would also lose his right to reject it.