Question

The demon was a big, cheerful-looking demon with a bland, round face. He eyed father. "I dunno, John." Many demons called Tang men John because they insisted, they never could get the hang of our real names. "You know anything about horseless?"
"Some," Father said. Truth to tell, he had never handled a horseless carriage in his life, though he had a book on them and cut out articles whenever they appeared in the demon magazines and newspapers. That was the extent of Father's knowledge. But to know facts is nothing. He had an intuitive feeling for what made the horseless carriages tick. He looked around inside the engine for about ten minutes and then wiped his face absentmindedly so that the grease-stained his cheek. He did not even notice.

Which quote from the passage is an example of direct characterization?

“The demon was a big, cheerful-looking demon with a bland, round face. He eyed father.”

“Truth to tell, he had never handled a horseless carriage in his life, though he had a book on them and cut out articles whenever they appeared in the demon magazines and newspapers.”

“That was the extent of Father's knowledge. But to know facts is nothing.”

“He looked around inside the engine for about ten minutes and then wiped his face absentmindedly so that the grease-stained his cheek.”

Answer 1

"The demon was a big, cheerful-looking demon with a bland, round face."

Answer 2

“The demon was a big, cheerful-looking demon with a bland, round face. He eyed father.” 

The direct characterization in the passage is basically describing what the demon looks like, their mannerisms, etc.