Once upon a time there lived a humble miller. Which best identifies the psychic distance in this sentence?

I do not know if this is a multiple choice question or not, but the psychic distance, or narrative distance, in this sentence is very remote, objective, and distant, since the narrator is just providing us with factual and contextual information: we only know that sometime in the past, probably a long time ago, there existed a miller who was humble. There is neither emotion nor intimacy here, just observation, since we have not (yet) been invited to get closer to the character, we have not (yet) been taken inside his or her mind.

The psychic distance is large because the reader does not have access to the characters' thoughts.