Been living in because the rest of them don't make sense if you were to put them in the sentence.
Answer:
A happy cobbler completing story. A happy cobbler Story: Once there lived a happy cobbler who passed his days in working and singing from morning till night.
Explanation:
Bierce uses the images of a watch, the rising and setting sun, and the swiftly or sluggishly flowing stream during the escape.
I think this one is stereotyping