False. It is necessary to cite all the sources used regardless if they were quoted verbatim, that is, "word for word" or if the information was paraphrased. Citing sources not only aids readers and future research and acknowledges the authors of ideas and contributions to the subject-matter of the paper, but also is done to avoid plagiarism.
I cant see the rest of the passage, but im taking a guess that it is no.2!
1.) The character is most always influenced as to whats going on around them
2.) It influences the characters attitude and overall personality.
3.) May see changes in the character in general
The correct answer is "a long narrative poem focused on heroic action and national in scope".
An example of such epics would be Edmund Spencer's Fairy Queen, or Geoffrey Chaucer's Canterbury Tales.
I believe the correct answer is to help the reader visualize a view where water and sky are difficult to tell apart.
The author is trying to portray an image where the water and the sky are somehow blending into each other - you can't tell where one ends and the other one begins, because both items are colored similarly - various shades of blue.