It's the last one, because a statue can't walk down a street.
Answer: Narrator is talking with a child in his mind
Explanation:
The Willow-wren and the bear
Evidence that best supports this conclusion is that the narrator is talking and interpreting in this story with a child in his mind and we can see that in a part:
“Pau Amma’s babies hate being taken out of their little Pusat Taseks and brought home in pickle-bottles. That is why they nip you with their scissors, and it serves you right!”
It is like he is talking about something that is showing us the experience of a child.
