The correct response is: It creates sympathy for Mitty since readers recognize that his fantasies show how he'd like to be, not how he actually is.
This option accurately reflects the central theme of the story, highlighting the disparity between Walter Mitty's mundane, often dull reality and his rich, adventurous fantasies. Readers may feel a sense of empathy for Mitty, understanding that his daydreams are an escape from his unfulfilling life, underscoring the contrast between his desires and his actual circumstances.