Final answer:
Fine horses indicated a knight's wealth and status and were crucial for medieval warfare, reflecting both practical value and social prestige.
Step-by-step explanation:
When Chaucer mentions that the knight has "Fine horses," it is significant because fine horses were a symbol of a knight's wealth and status. Horses were essential for medieval warfare, offering mobility, speed, and an elevated position from which to fight. Knights were often members of the nobility, who could afford such luxurious and powerful animals, which also reflected their societal role as defenders and their place within the aristocratic military force. Therefore, fine horses were not only practical in battle but were also a marker of social prestige.