The correct answer is:
This is an example of the writer telling through description rather than showing through dialogue.
Sometimes writers like to explain explicitely what's happening instead of adding dialogues of the situations., which is the case in this passage,
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Its saying basically that there are hidden secrets underneath people. That every smile, nod or wave has a hidden agenda. It's like warning to be wary of who you trust.
Hardship is a word that is like challenge