The setting in "The Gift of the Magi" help build the theme of the story. For instance, in the beginning, when the woman (srry I forgot her name, just write it in) was in her apartment, wondering what to get Jim, it helped by leading [insert woman's name] to selling her hair to buy Jim a gift. The characterization also helped develop the theme to this classic story. [Insert woman's name] was very desperate to find her beloved Jim a gift. She was so desperate that she sold her own hair, which was her most treasured possesion. Jim also sacrificed his watch in order to buy [insert woman's name] something for Christmas. (That's all I could help you with at the moment...good luck!)