Final answer:
The best term to describe the story, where pilgrims swap stories on their way to Canterbury, is a frame narrative, as it is a primary story that frames a collection of shorter stories.
Step-by-step explanation:
The description given suggests that the correct answer would be B. Frame narrative. A frame narrative occurs when a primary story encompasses or frames a series of shorter stories, which may be related in topic, theme or purpose. This is often used to organize a larger set of narratives that could be stories within a story. Comparatively, a parable is a simple story used to illustrate a moral or spiritual lesson, an allegory is a complex narrative in which characters and events are symbols representing deeper truths, and a parody mimics the style of a particular writer, artist, genre, or work for comedic effect or criticism.
The story description matches that of Geoffrey Chaucer's "The Canterbury Tales," where a group of pilgrims entertain one another with a variety of stories during their journey to Canterbury, and this is indeed an example of a frame narrative.