(i) ‘They’ refers to the soldiers who returned after fighting the war for their country.
(ii) Their nights are haunted because they see ghosts of their friends and bloodshed in the battlefield in their dreams.
(iii) They see ghosts of their friends who died in the war because they loved them and were in a state of shock because of losing their loved ones in the war.
(iv) Dreams dripping with murder refers to the scenes of bloodshed in the battlefield that those soldiers recalled. They were so shocked that even in their dreams, they could see only these things.
(v) The soldiers will be proud because they wanted to fight and did not hesitate to die for their country. They believed that war had brought glory to their country, of which they were proud of.
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