Final answer:
Setting creates a story's mood and is characterized by the time and place of the narrative, while theme is the central idea or message of the story. Plot is the sequence of events that outlines the story's structure.
Step-by-step explanation:
The setting of a story encompasses the time, place, and circumstances where the narrative occurs. It is integral to crafting the mood and developing the story's atmosphere. Works like Edgar Allan Poe's "The Fall of the House of Usher" demonstrate how a dark and oppressive setting can make readers feel the same sense of confinement and depression experienced by the characters. The setting is often described through narration and details that provide clues about the themes and conflicts within the story.
The theme is the underlying idea or the message that the author aims to convey through a story. It unifies the plot points, conflicts, and characters around a major concept, offering insights about humanity, life, or the universe.
A story's plot refers to the sequence of events that make up the narrative. It includes elements like the exposition, which sets the stage for the story, the rising action leading to the climax, and the resolution where conflicts are settled.