Final answer:
The Castle of Otranto by Horace Walpole is best described as Gothic Fiction, a genre characterized by horror, supernatural events, and settings in dark, medieval castles.
Step-by-step explanation:
The novel The Castle of Otranto by Horace Walpole, which was published in 1764, is best described as Gothic Fiction. This genre is known for its elements of horror, supernatural events, and often set in dark, medieval castles which embody a dream-like atmosphere with occurrences of the supernatural. The castle and its mysterious, often terrifying elements serve as a common setting for these narratives, contributing to the eerie and suspenseful mood central to the Gothic genre. With its foundation in the emerging romantic sensibilities of the time, Gothic Fiction represents a departure from the Enlightenment's emphasis on reason and the classical traditions, thereby embracing the imaginative, the mysterious, and the emotional. Horace Walpole's novel played a pivotal role in establishing this genre, influencing later writers such as Edgar Allen Poe and Mary Shelley, and continues to captivate readers with its dark romanticism and thrilling narratives.