The natural setting outside of Mrs. Mallard's room reveals her own feelings as she goes from being sad for her husband to being happy for her own freedom.
We can define setting as everything that surrounds the characters in story, such as:
In the short story called "The Story of an Hour," Mrs. Mallard is the main character. She has just learned that her husband has died in a train accident. She locks herself up in her room after getting the news, but a beautiful transformation begins in her mind.
The setting outside of her room reveals that transformation. Mrs. Mallard is slowly realizing that her life does not have to end with her husband's. She is now free to be herself; she no longer needs to ask for his opinion or permission. The happiness she feels is represented by the beautiful and open sky, the singing birds, the voices she can hear, etc.
With the information above in mind, we can conclude that the answer provided above is correct.
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