Which of these terms is defined as a literary work that contains imaginary characters events and settings?

The term that defines a literary work containing imaginary characters, events, and settings is fiction.

Here's why:

* Fiction encompasses stories that are not based on real events or people. It allows authors to create worlds and characters from their imaginations.

* Nonfiction, on the other hand, deals with real events and people, aiming to present factual information.

Let me know if you have any other literary terms you'd like to explore!