Final answer:
Historical Fiction is characterized by a realistic, authentic historical setting which blends factual history with fictional elements, remaining faithful to historical accuracy while weaving in original characters and stories.
Step-by-step explanation:
Historical Fiction is characterized by a realistic, authentic historical setting wherein authors blend factual historical context with fictional elements. This literary genre allows writers to create original narratives that could plausibly fit within the gaps or the margins of recorded history while ensuring they adhere to known historical facts. Writers like Victor Hugo, with his acclaimed work Les Miserables, and Kjartan Flögstad in Grense Jacobselv, have successfully used factual historical backdrops to develop their fictional characters and storylines, offering readers a sense of connection to our history and national identity. It is essential for the author to maintain the veracity of the setting and historical characters, avoiding anachronistic elements or altering significant historical outcomes.