The statement "The narrator's observations at this point in the story speed up the pacing slightly." is false.
Pacing is the reader's perception of how quickly or slowly the tale is progressing. This depends on how long a scene is and how quickly you, as the writer, convey information. But not on the the narrator's observations towards the progressing story.
It is not necessary that the pace will speed up as the events and actions unfold because the pace of the story depends on the formation of words, phrases and language used by the author.
Thus, the statement is false.
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