Answer:
Gaiman has used the setting of modern English town to develop the plot of magical realism.
Step-by-step explanation:
'Chivalry' is a short story written by Neil Gaiman. The story is a work of magical realism, meaning a blend of magic with realistic fiction.
Gaiman has marveously blended these two elements to develop the plot of the story. The setting of the story is of a modern day ordinary local store, where Mrs. Whitaker finds the Holy Grail. In this setting, there is a blend of an ordinary local store with an extraordinary finding of the Holy Grail, the wine cup from which Jesus Christ took the Lord's Supper before His crucifixion. This finding of the Holy Grail by Mrs. Whitaker further develops the plot when Sir Galaad, a Knight of the Round Table, appears at the door of Mrs. Whitaker to claim the Holy Grail.