Option 1 -> Incorrect; the passage states humorous stories can be long and meandering, while comic stories must be brief.
Option 2 -> Incorrect; this reverses the actual distinction made in the passage.
Option 3 -> Directly aligns with the passage: "The humorous story depends for its effect upon the manner of telling; the comic and the witty story, upon the matter."
Option 4 -> Incorrect; the passage explicitly states humorous stories require artistic skill, while comic stories do not.
Hence, Option 3 -> The passage clearly distinguishes that a humorous story's effectiveness comes from HOW it is told (the manner - gravely, concealing humor, casual delivery), while a comic story's effectiveness comes from WHAT is told (the matter - the content itself, announced as funny beforehand) -> correct