Final answer:
An internal conflict refers to a struggle within an individual when faced with a situation that challenges their beliefs, values, or goals, such as deciding whether to report corruption.
Step-by-step explanation:
If a fictional character argues with himself about whether he should turn in a city official for corruption, he is undergoing an internal conflict. Internal conflict is a crucial concept in literature, as it takes place within an individual and involves a struggle between different aspects of the same character's personality, such as their beliefs, values, or goals. This kind of conflict often surfaces when a character is torn between duty to their family and duty to the state or when ethical dilemmas arise, presenting them with choices that can have personal and societal repercussions.