I'm pretty sure it was "Falsehood has to die. And truth has to come forward".
An inference is someone's belief or opinion based only on the information that he/she knows.
"Squatter sovereignty" was a term used by the people that disagreed with the political doctrine which stated that the owners of federal territories should decide if their lands would enter the Union as slave or free states.
The inference being made in the excerpt is the belief that slavery should be allowed inside the territories of people who chose to enslave others, without the interference of anybody else.
The answer is "stacks." That is the object of the phrase, and since a person is searching for something ON the shelf, they aren't searching for the shelf itself.
If a story has an unreliable narrator, you should still trust what they say, although you must take it with a grain of salt. The narrator could still be telling the truth, although if they are insane they may describe seeing a ghost when there wasn't really a ghost. An unreliable narrator does not create a fake story, only an unreliable story, where there may be holes or lies weaved into truth.
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