What do we learn about the character of the tailor's wife through the use of INDIRECT CHARACTERIZATION in the passage above?

she is a lively and engaged member of the community who cares deeply about her neighbors
she is an anxious, tortured stalker who has an unhealthy obsession with Mrs. Tall
she is a meddlesome snitch who takes pleasure in scandal and persecuting Mrs. Tall
she genuinely means well but often in overzealous when it comes to monitoring her friends

She genuinely means well but often is overzealous when it comes to monitoring her friends.

What is the most likely reason that people are unable to look Mrs. Tall in the eye at the end of the passage?

the evidence of Mrs. Tall’s emotional pain humanized her in the eyes of the community and made them ashamed of their cruel behavior
they witnessed Mrs. Tall’s physical strength and talents in the field of combat and are scared to get into an altercation with her
everyone in town knows that Mr. Short will not be returning to Unity Mansion but do not have the heart to tell Mrs. Tall
the people are afraid to engage Mrs. Tall in case they too are accused and persecuted for the crimes that Mr. Short was incarcerated for

The most likely reason is that the evidence of Mrs. Tall's emotional pain humanized her in the eyes of the community and made them ashamed of their cruel behavior.

Based on the passage, we learn that the character of the tailor's wife is a meddlesome snitch who takes pleasure in scandal and persecuting Mrs. Tall. This is evident through the use of indirect characterization, as the passage describes her eavesdropping on her neighbors and being thrilled by gossip.