Answer:
The lottery may not have been a happy occasion because the men smiled rather than laughed, and the children were apparently very hesitant to join their families when it started.
Step-by-step explanation:
Shirley Jackson's short story "The Lottery" revolves around an annual event that a small village has as part of their custom, though hardly anyone remembers how it started and for what reason. The story presents themes of family, civilization, violence, tradition, and the importance of questioning anything that one deems wrong.
In the given excerpt from the story, the narrator describes the atmosphere and the villagers who were assembled for the lottery. Commenting that the "[men] smiled rather than laughed" and the "reluctant" children seem to suggest that they are not exactly looking forward to the event. It seems as if the lottery may not have been a happy occasion, with everyone apparently 'wanting it to end as soon as possible.
Thus, the correct answer is the second option.