B.It shows the prince thinking that his civilization has reached a glorious peak.
Explanation:
This is the most accurate description of how paragraph 2 helps develop the setting of this story. In this paragraph, we see that the prince believes that his civilization has reached a glorious peak. This develops the setting by implying that the civilization the Prince lives in is one of refinement and advancement. Moreover, it implies that the civilization is particularly developed when compared to others that existed at the time.