Final answer:
The story described represents a tall tale, which is a type of folktale involving exaggerated events and larger-than-life characters with extraordinary abilities.
Step-by-step explanation:
The story described in the question represents a tall tale. A tall tale is a type of folktale that involves exaggerated or highly improbable events, often featuring larger-than-life characters with extraordinary abilities. In this story, Milia is portrayed as a dragon with the power to witness wrongdoing and protect innocent people, which is a characteristic of tall tales.
Learn more about Types of folktales