Why is the setting significant in a literary work?

The significance of setting in a literary work is primarily that it establishes both the time and place in which the story unfolds, which in turn profoundly influences the plot and the development of characters. The setting serves as a backdrop against which events occur, shaping the circumstances that characters face and their interactions with one another.

For instance, a story set during a time of war will have different tensions and conflicts compared to one set in a peaceful town. Similarly, a character's motivations and behaviors can be strongly affected by their environment—whether they are in a bustling city or a secluded countryside can dictate their social interactions and emotional experiences. Moreover, specific cultural or historical contexts embedded in the setting can add layers of meaning and resonance to the narrative, affecting how readers interpret the characters’ actions and the plot’s progression.

While the author’s background and intentions may inform the work, they are not as directly tied to the core functions of the setting itself. Similarly, the narrative perspective, while shaped by various elements in the story, is not solely defined by where or when the story takes place. Thus, the establishment of time and place, and their direct influence on plot and characters, makes option B the most fitting answer.