The author is most likely trying to emphasize (B.) a theme about how appearances can be deceiving.
The author is presenting an original reversal in character depiction, that is, a literary technique that consists in portraying a character in an opposite way to his stereotype, which is the way in which it is usually portrayed. While in traditional stories and legends the knight in shining armor is depicted as the hero and the dragon is presented as an evil animal and a big menace due to its size, in this story the author pretends to represent the dragon as the good one and the knight as a wicked man. What the writer wants to emphasize is that a dragon can be peaceful and quiet despite the way it looks and a human being can be ruthless in spite of its small size; therefore, appearances can be deceiving.
