The quote "I knew what the old man felt, and pitied him, although I chuckled at heart" suggests that the narrator exhibits feelings of both empathy and malice. The narrator claims to feel pity for the old man, indicating a semblance of compassion; however, the fact that he "chuckled at heart" reveals a deeper, more sinister enjoyment or amusement regarding the old man's fear.
Thus, the best answer from the provided options is:
• The narrator is cruel.
This option captures the narrator’s underlying sadistic pleasure that contrasts with any superficial sense of compassion he might express.