Bad conscience?

Lately I often have bad dreams, sometimes real nightmares. The problem is not the nightmare in itself, but rather not knowing whether what happened in my dream is real or not.

Last night, for example, I dreamed that my supervisor told me my dissertation was absolute crap and that they would let me defend it just so they see how good I am at bullshitting, but that there's no way I would get my Master's. I then dreamed that my former boss threatened me with a knife because I had sent a confidential email to the wrong addresses. And, last one, I dreamed that something nice happened to my friend. It took me a few seconds to realise my brain had made it all up. Some would probably say that vivid dreams show you have great imagination. Others, however, say that dreams are a reflection of reality. If the latter is true, there are three options: 

a) I have a bad conscience for being a bit careless at times (a reaction to my being over scrupulous most of the time, I guess).

b) I am developing a medical condition which very much resembles paranoia (worrying!).

c) My body has had enough of staying up late/waking up extra early to finish work and is telling me I need food and sleep. I'd better go get some food before I start dreaming about a talking rugby ball yelling at me and punching me in the face :)