The purpose of drawing conclusions is to READ FOR MEANING.
Reading for meaning involves understanding both the written and the implied information in a particular story. There is no way one can possibly draw correct conclusions if one doesn't understand what has been read.
Conclusions are drawn by using clues from the passage read to develop a reasonable judgement.
"My blood is the red sea"
meaning My blood is as red as the red sea.
"Thunder is a drum"
Meaning very loud
My cat is a bunny"
meaning very fluffy,
The guy was waiting for christoper Columbus at the train station
Realistic fiction is fiction that could happen in real life. For example, the fault in our stars is an example of realistic fiction.