In the passage, the observation that can be seen is that: Ordinary life continues for people even when others are suffering.
What is an Observation?
An observation is a careful scrutiny of an idea, passage, something, a person or an environment in order to notice something or in order to make a deduction. It is a process of monitoring something or someone closely.
Therefore in the passage, we see that after carefully observing the tone, we deduct that Ordinary life continues for people even when people are suffering. So the first option is correct.
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