Final answer:
Naturalism is the literary movement that celebrates hope, personal freedom, and natural instincts while exploring grittier subjects and the impact of hereditary traits and environment on human beings.
Step-by-step explanation:
The literary movement that spawns a new genre of tragedy, celebrates the spirit of hope, personal freedom, and natural instincts is called Naturalism. Inspired by Emile Zola and Charles Darwin, Naturalist writers like Stephen Crane, Frank Norris, and Jack London created works that explored the harsher realities of life such as poverty, crime, and violence. They presented humans as being at the mercy of hereditary traits and environmental forces, rejecting the genteel subjects favored by Realism. This movement went beyond the aesthetic of Realism to tackle grittier subjects, showing life in a deterministic manner where characters faced struggles in an indifferent or hostile natural world.