Narrator and point of view

The short story “Butterflies” by Patricia Grace is told from the point of view of a third-person narrator. 

The narrator is limited to the information that can be gathered from the characters’ interactions with each other. For instance, we do not know what the granddaughter did at school, until she tells the grandparents. The narrator reports the interactions between the characters, without offering any interpretations:

‘You bring your book home?’ the grandmother asked.
‘Yes.’
‘You write your story?’ 
‘Yes.’
‘What’s your story?’
‘About the butterflies.’

The narrator has no insights into the characters’ thoughts. For instance, we do not know what the granddaughter thinks about the contradiction between the teacher’s words and her own knowledge regar...