Answer: Bilbo's indecision about whether he should go on the adventure; his determination to give it a go
Explanation:
Conflict resolutions supposes reaching an agreement after pondering all possibilities and versions of the situation. Conflict resolution also means finding a solution to the difficult situation. The correct answer is the one related to Bilbo's indecision, because he was having a strong internal conflict about whether to go on the adventure or not, but he finally took a decision and came up with a solution, after all: to give it a go.
All the other instances do not comprise a solution: the dwarves have a grudge with the goblins, but the dwarves seeking revenge is not a solution. The dwarves telling the burglar they don't welcome him on the voyage isn't a solution either and they haven't reached any conclusion. Gandalf disappearing and then having an illness does not hint at any conflict (internal or between two parties) and his illness definitely isn't a resolution.
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To make this correct, you can add a quotation mark in "hes" to represent "he is."
Here's the finished sentence:
He's fishing at the pier.
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In my opinion, they do not only reveal what will happen, but also manipulate events. When Macbeth approached the witches, they could have concealed the truth from him and just let the events unfold, but they didn't do it. They told him about the prophecy, thus initiating the events that soon followed. If they hadn't told him the truth, Macbeth might have never killed Banquo, Duncan, and the rest in order to become king. So yes, they manipulated events and caused a great tragedy.