The narrator observes but does not participate in the story's action.
I'm not really the best when it comes to answering questions like this but i would say based on what paragraph 3 said
the answer would be D
I hope you get it right
Ann was drinking wine when her friend <em>came</em> in.
Steve was cooking dinner when he suddenly <em>cut</em> his finger.
Sue was cooking when she <em>burnt</em> her finger.