The statement that most effectively explains how the narrator develops over the course of the passage is He comes to understand the benefits of adapting to a new environment while still maintaining ties with old friends.
The character of the narrator undergoes some changes through the course of the novel as he has to adapt to a new environment and find the balance in maintaining ties with old friends.
This refers to the different ways in which a character's roles are changed over the course of a story.
Hence, we can see that the narrator's character is a round character as he has to adapt to a new environment and find the balance in maintaining ties with old friends.
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