2 answers:
The answer would be: <em>They are the foolish ones.</em>
since the old smith is patient and exacting, not foolish at all + he does not care that others think his extreme carefulness is foolish.
Hope this answer helps you!
I took he test and got the answer they are the foolish ones
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The 2nd option you gave us, is your answer
It's called a metaphor! :)
To show that both chase the american dream