What does the term 'plot' refer to in literature?

The term 'plot' refers to the sequence of events that make up a story, which includes the actions and incidents that occur as the narrative unfolds. This encompasses the conflict, rising action, climax, falling action, and resolution. Essentially, the plot is structured around the dramatic events that propel the characters forward and shape their experiences, making it a fundamental component of storytelling.

In this context, while the setting, character development, and moral lessons are important elements of literature, they do not define the plot. The setting provides the time and place of the story, character development focuses on the growth and changes in characters, and the moral lesson conveys the larger themes or messages of the narrative. However, the plot specifically captures what happens in the story itself, making it the correct answer.