Final answer:
Option (3), A flashback is the term used when a character in a story recalls a past incident; it interrupts the chronological flow of the narrative to depict earlier events.
Step-by-step explanation:
The term for a device in a story where a character recalls an incident that happened in the past is a flashback. A flashback is a scene that interrupts the chronological order of the main narrative to take the reader back to an earlier point in time. This can provide insights into the characters or contribute to the plot's development.
An example of a flashback can be found in 'An Occurrence at Owl Creek Bridge' by Ambrose Bierce, where the story’s present events on the bridge are interrupted with scenes from the character Farquhar's past, providing context and depth to his current predicament.