"I thought all the fairies were dead," Mrs. Darling said.

"There are always a lot of young ones," explained Wendy, who was now quite an authority, "because you see when a new baby laughs for the first time a new fairy is born, and as there are always new babies there are always new fairies. They live in nests on the tops of trees, and the mauve ones are boys and the white ones are girls, and the blue ones are just little sillies who are not sure what they are."
How does the story Wendy tells contribute to the plot of the story?
(1 point)
Wendy and Mrs. Darling argue about whether fairies exist.
Wendy reveals her familiar knowledge of characters who live in the land of Peter Pan.
The fairies are introduced as new characters who interact with Mrs. Darling.
Mrs. Darling is upset to learn the fairies are not dead.

Wendy's story contributes to the plot of the story by introducing the concept of fairies and their connection to newborn babies. This helps set the stage for the magical and fantastical elements that are a key part of the world of Peter Pan. Wendy's knowledge of the fairies also showcases her expertise and familiarity with the characters in Neverland, giving insight into her character and her relationship with the magical world.