The correct answer is the second statement. In the "The Interlopers" by Saki (Hector Hugh Munro) the setting contributes to the theme of the story by showing that nature is unconcerned with human desires. In this short story Georg and Ulrich are continuing three years long dispute about the forest. The setting of the story is very important because the forest on the border of their lands doesn’t really has value, but represent their greed and yearning for dominance over one another. The forest on the night of the final dispute is described as a dreary place in which cries for help are only heard by wolves. This shows that nature is unforgiving and indifferent to man’s concerns (dispute over land).