Final answer:
The term 5) 'setting' refers to 'where and when a story takes place' and includes the story's location, time, social and cultural backdrop, and environmental conditions that shape the narrative's mood and symbolize aspects of character development.
Step-by-step explanation:
Definition of Setting
The term you are looking for when describing 'where and when a story takes place' is 5) setting.
The setting of a story includes its geographical location, time period, social and cultural context, as well as environmental details like weather.
A notable example of setting influencing a story is in Gone With the Wind, which is set in Georgia during the American Civil War.
The setting establishes the mood which is the general feeling conveyed by the story. For instance, in Edgar Allan Poe's The Fall of the House of Usher, the dark and oppressive setting evokes feelings of confinement and depression.
The setting can also symbolize aspects of the characters' internal states, such as in Poe's story where the decaying house mirrors the deteriorating mental states of its inhabitants.