Final answer:
Historical fiction does not include a completely fictional setting not based on any historical fact. The setting of historical fiction is typically grounded in historical facts, and characters can be both fictional and nonfictional.
Step-by-step explanation:
Historical fiction does not include a completely fictional setting not based on any historical fact. While historical fiction tells a story set in the past and often presents actual events from the point of view of fictional characters, the setting is typically grounded in historical facts. Additionally, characters in historical fiction can be both fictional and nonfictional, meaning they may interact with real historical figures or be entirely invented.