Which type of narrator does not participate in the story's action and may be classified as omniscient?

The type of narrator that does not participate in the story's action and is often classified as omniscient is the third person observer. This narrator has the ability to tell the thoughts and feelings of multiple characters, providing a comprehensive view of the story's events. This omniscient perspective allows the audience to gain insight into different characters' motivations and emotions, enriching the overall narrative.

While first person narrators share a personal perspective and are involved in the story's events, and second person narrators directly address the reader using 'you,' these options do not fit the criteria of being an observer outside the action. An anonymous narrator is also not a standard classification in literary terms regarding point of view. Therefore, the third person observer is the correct choice, as it aligns with the definition of an omniscient narrator who remains outside the story and offers a broader view.