Answer:
I'd say the answer is the first one, "The narrator never takes part in the action of the story".
Explanation:
Though there are some times when a narrator does not take part in the action of the story, such as in a third person point-of-view story, a narrator can in fact take part in the action of the story.
In some instances, the narrator of the story can be one of it's characters, such as the protagonist, antagonist, or a side character. The characters obviously take part in the action of a story, therefore if the narrator is one of the characters, they take part in the action of the story. So, the first choice is false.
Hope this helps!
