Indirect characterization is when the author reveals the traits of a character by the way the character speaks, thinks, effects others, acts, and looks. In this excerpt the character's traits are shown through his generosity to the drivers. He gives them each a pack of cigarettes and informs them about what is planned. Direct characterization is when the author specifically tells the reader the character's traits.
<em /><u><em>"She did not understand what happened."
</em></u>It is a complete sentence since it has a subject (she) and a verb (understand), and is independent (i.e. doesn't require another clause to make sense<u><em> </em></u>