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In this question, three things are to be considered.
1. affect vs effect ( Affect is a verb that means influence; effect is a noun meaning result)
2. possessive form of "story" ( the correct possessive for story is story's, ie singular possessive )
3. plot vs plots ( here, one story is considered so 'plot' will be used instead of 'plots')
Hence, the correct option is (D) affects the story’s plot.
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