The correct answer is "under what conditions the story takes place". The setting of a story is defined by the time and the geographic location at which the narrative takes place. If an analysis of the story setting should be performed, it is important to analyze the conditions of the story as they are closely related to the time and location of the events.
The badger eats the honey it wants and the bird feeds on the remains. This is an example of a symbiotic relationship. It is also sometimes called mutualism.
The line "I am a citizen of the world" means that what a person do affects the world. Every individual has more similarities than differences to each other. "When Greek Meets Greek" is all about having racial prejudice.