Final answer:
A story that is partly true and includes exaggerations, typically describing a real or fictional character's unusual life events, is known as fiction.
Step-by-step explanation:
A story that is only partly true about a real or made-up character, and usually includes exaggerations and unusual events or circumstances is known as fiction. Unlike a biography, which is a nonfictional account of a person's life written by someone else, fiction is created from the imagination of a writer. While it might include elements of truth or be inspired by real events or people, fiction is not constrained by the factual accuracy that nonfiction and creative nonfiction are beholden to. Examples of fiction include novels, short stories, and novellas.