The narration affects Oskar's credibility in the passage from "Extremely Loud and Incredibly Close" since his attempt at self-reflection makes him seem honest.
What is narration?
We can define narration as the process or action of telling someone a story. The person who does it is called a narrator. In the passage we are analyzing here, the narrator is called Oskar, and he is showing a state of self-reflection.
Oskar explains that certain things - related to the attack on September 11 - make him panicky. He tries to honestly convey his feelings and sensations, which is why we can choose the third option as the correct answer.
Learn more about narrators here:
His attempt at self-reflection makes him seem honest.