Fe second one
He is prideful and overly confident
The type of context clue in the sentence is a definition.
A short story's setting is made of time and place.
Apart from plot (what is going on) and characters (who is doing what they are doing), the setting (where and when is the plot happening) is the most important element of a short story. The interpretation of a short story depends very much on how the author has described the setting. It provides a context for the events.
