Final answer:
The passage is a fictional narrative depicting a whimsical scene with animals behaving unusually, which signifies its imaginative and non-literal nature.
Step-by-step explanation:
The passage 'Well now, one winter it was so cold that all the geese flew backward and all the fish moved south...' is best interpreted as a fictional narrative. This is because it describes an unrealistic and imaginative situation where animals are behaving in a fantastical manner, which is not a literal account of real events. It is not a historical account, scientific observation, or a weather report, as these would involve factual and accurate descriptions of events or data.