How does this paragraph develop the characters in the dialogue?

It explains to the reader where the characters are and what they are doing.
It shows that Adam is afraid of what is in the water, but Laura is fearless and likes to tease him.
It shows that Adam is interested in learning more about the crabs, but Laura is ignoring him.
It explains to the reader how long Adam and Laura have known each other.

The paragraph develops the characters in the dialogue by showing their contrasting personalities and attitudes towards their surroundings. Adam is portrayed as fearful, while Laura is depicted as fearless and teasing. Additionally, it highlights Adam's curiosity and desire to learn more, as well as Laura's disinterest in his questions. Lastly, it provides information about the length of their acquaintance, suggesting a familiarity between the two characters.