Final answer:
The story of Milia represents a tall tale, showcasing exaggerated elements and moral lessons within an entertaining narrative.
Explanation:
The type of folktale that the story of Milia represents is a tall tale. Tall tales are characterized by exaggerated, fantastical elements that often involve larger-than-life heroes with incredible abilities, such as dragons, and their extraordinary adventures.
These tales are meant to entertain the audience while showcasing the prowess and courage of the protagonist. In this case, Milia's power of witnessing wrongdoing and saving innocent people aligns with the grandiose nature of tall tales.
Furthermore, tall tales often feature moral lessons subtly woven into the narrative, making them both entertaining and instructive for the listeners or readers.
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