The correct choice is 'くれました' (did the favor for me). The grammar pattern '[Verb Te-form] + くれる' indicates that someone else performed an action as a favor for the speaker. Sentence context: '...my friend praised me (to my joy).' Since the friend praised ('褒めて') and the speaker felt glad ('嬉しくて'), the friend did the favor of praising, represented by '褒めてくれました'. 'あげました' (I praised them) and 'もらいました' (would require '友達『に』褒めてもらいました') do not fit.