Final answer:
Modern fantasy is characterized by known authorship, fantastical elements, and often a multivolume series, but the characteristics exclude events that could happen in the real world, as fantasy is defined by the impossible and magical.
Step-by-step explanation:
The characteristics of modern fantasy literature include a number of elements that distinguish it from other genres. Fantasy stories are often written by a known author (option 1), which contrasts with traditional folk tales that have anonymous origins. These stories typically involve elements and events that are beyond the realm of possibility (option 3), such as magical powers or mythical creatures, and thereby create a fantastical narrative. Unlike realistic fiction, which is grounded in the plausible and actual, modern fantasy deliberately explores themes and scenarios that defy everyday realism, which leads us to the correct answer for the excluded characteristic for the genre.
Option 2, suggesting that events in fantasy stories could happen in the real world, is the characteristic that does not belong. Fantasy, by nature, includes elements that are not possible in the real world. Finally, it is common for fantasy stories to unfold over several volumes in a series or cycle (option 4), building intricate worlds and character arcs over time, as seen in popular works like J.K. Rowling's Harry Potter series or J.R.R. Tolkien's The Lord of the Rings.