Final answer:
The lines depict a heroic character, resembling Beowulf, confronting a dragon in lieu of an expected hermit, relating to how Beowulf has defeated evil, which is a characteristic of a hero. His confrontations with evil creatures enhance his heroic qualities and underscore the values of heroism.
Step-by-step explanation:
The lines from the passage best contribute to Beowulf's characterization as a HERO through option b Beowulf has defeated evil. This is evident in the description of the scene where a heroic figure, Ethelred, arrives to find a dragon in the place of an expected hermit, signifying an encounter with a malign force. The dragon is described as 'scaly and prodigious' and sits before a 'palace of gold', underscoring the classic heroic narrative of battling formidable and evil creatures to protect or win treasures.
Characters from heroic epics, such as Beowulf, are often depicted engaging in battle against creatures that represent evil or chaos, as part of their journey. Their triumphs over these evils not only affirm their status as heroes but also uphold the values of courage and virtue in the face of adversity, much like Beowulf's famed victories over Grendel and the dragon.