The statement that best describes the narrator's internal conflict in the story is:
• The narrator experiences pressure by his family to feel more Panamanian and by his peers for not being American enough.
This choice highlights the dual pressures the narrator faces: the expectation from his family to connect with and embrace their Panamanian heritage, while also dealing with the societal influences of his peers that suggest he should conform to American identity, thereby illustrating his struggle with his cultural identity.