The best answer to the question: What outcome do the events of the narrative have for the narrator lifetime service, would be, 1: She realizes how big an impact one person can have on others.
Explanation:
At the very end of the entire narrative, the person who tells of these events, the granddaughter, says herself that the biggest impression the whole event of her grandfather earning that award had on her was that she had come to know the impact that one person, in this case her grandfather, could have on others, even without knowing it. In fact, at first the grandfather does not wish to accept the honors that are going to be given to him, and he tries to escape the entire ceremony, except for the fact that his family already learns about it. The narrator, the granddaughter, tells us how the events develop before and after the actual ceremony, including her grandfather´s feelings, and those events that lead to her final conclusion. We learn along the way that she comes to see what her grandfather means to other people, how they see him in the community and why they value him so much. However, all this, the narrator concludes at the end of the passage, by saying that what struck her the most was to see how one person, like her grandfather, could impact on the lives of the others, even without realizing this. That is why the answer is the first choice.