Based from the excerpt, it can be inferred that the mood of the story delves into the realization that '<span>The children didn’t realize just how poverty-stricken their families were.</span>' As mentioned, they had no reference (such as radios, TV, or newspapers) in order to fully grasp their current situation.
She doesn't recognize him
I would go with:
A theme is best written as statement because a theme is main thing of a story, the author could also use a statement in a story to make it seem more alive or more real.
I Hope my answer worked for you :)