Which point of view allows the narrator to know the thoughts and feelings of only one character?

The choice indicating that the narrator knows the thoughts and feelings of only one character is indeed the correct understanding of third person limited point of view. In this narrative style, the story is told from a perspective that allows the narrator to convey the inner thoughts, emotions, and motivations of a single character while keeping other characters' feelings and thoughts undisclosed. This creates a more intimate understanding of the selected character's experiences and perceptions while maintaining some narrative distance from others.

In contrast, first person point of view involves a narrator who is a character in the story, sharing their personal perspective directly. Second person engages the reader by using the pronoun "you," making them a character in the narrative, which doesn’t align with the condition of knowing only one character’s thoughts. Third person omniscient, on the other hand, grants the narrator access to the thoughts and feelings of all characters within the story, providing a broader perspective than what is allowed in the third person limited viewpoint.