B) Charlie's level of intelligence limits his ability to understand people and events.
Charlie's handicap limits his perception of everything around him. As his intellectual capacity is very low, this is totally different from the reader's ability to interpret and understand the events and people with whom Charlie lives. Although the reader can understand them, Charlie cannot, because he sees everything in a very innocent and childlike way, without the ability to interpret and reason.
Answer: Hercules shows important character traits, such as strength and courage.
The sentence that's a formal revision of the informal example sentence is that Hercules shows important character traits, such as strength and courage.
Since it is a formal sentence, it should not contain contractions such as shouldn't, won't etc. Also, it should be noted that the sentence should contain facts alone and should not contain the opinions of others.