What does "setting" refer to in literary terms?

In literary terms, "setting" encompasses both the time and place in which a story occurs. It establishes the backdrop against which the events unfold, influencing the plot and contributing to the overall atmosphere of the narrative. The setting can provide context for the characters’ actions, shape their experiences, and help convey themes within the story. Understanding the setting is crucial for analyzing how it impacts the characters and the narrative's development.

The other options do not accurately define setting. For instance, the moral lesson relates to the theme of the story, while emotional tone and dialogue focus on character interactions rather than the environmental or temporal context in which the story takes place. The underlying message through symbolism pertains to deeper meanings in the text, which also extends beyond the scope of setting.