This is a correctly written piece of dialogue. It is both grammatical and conveys meaning which leads us to believe that it is correct.
Which transitional word or phrase would be best to use to show contrast between two ideas?
B) although
The correct answer is C. Ordinary characters can do great good. As he himself says it in the book, Bilbo is a Baggins from Bag End and it should remain that way. He is an ordinary person living an ordinary life, but strangely is sucked into a world of magic and adventure. In the end, he does great things and changes the future of the entire world.
Out of the choices given, the sentence from a hypothetical novel suggests a third person restricted omniscience. The correct answer is C.