Hello. You did not present the text to which the question refers, which makes it impossible for lines 6-13 to be evaluated. However, I will try to help you in the best possible way.
Sancho respects Don Quixote because of Don Quixote's fidelity and conviction in relation to his dreams. Sancho knows that Don Quixote's dreams are fantasies, but he admires Don Quixote's courage and determination to live them and defend them with all his strength. An example of this can be seen when Don Quixote thinks that windmills are dragons. Although Sancho tries to persuade him to the contrary, but he admires and respects Don Quixote's courage in facing the imaginary dragons.
This question is about "Don Quijote de la Mancha" a book written by Miguel de Cervantes that satirizes the chivalry works by showing the protagonist, Don Quixote, losing his mind when reading this type of story and believing that he is a walking knight.