Final answer:
The word that best fits the definition of a traditional story about gods and heroes is 'Myth'. Myths are key cultural narratives in Greek tradition that explain the world and impart values, also influencing theater and drama.
Step-by-step explanation:
The word from the list that best fits the definition of a traditional story about gods and heroes is c) Myth. A myth is a fictional story, often of epic proportions, that is usually told to explain aspects of the natural world, promote beliefs, or convey moral lessons to society. For example, in Greek culture, myths were part of a mythopoetic tradition, often transmitted through poetry and serving as a foundation for the educational system. Not only were these myths entertaining, offering instruction on a wide range of life's complexities, but they also provided moral exemplars for the Greeks to follow. Moreover, myths were instrumental in the arts, as seen in the epic works of Homer and Hesiod, and they were incorporated into tragedies written by playwrights like Sophocles, who used mythological and ancient settings to explore philosophical questions and human experiences.