[INST] Classify the following excerpt as either fiction or non-fiction, and explain your reasoning./nIn a hole in the ground there lived a hobbit. Not a nasty, dirty, wet hole, filled with the ends of worms and an oozy smell, nor yet a dry, bare, sandy hole with nothing in it to sit down on or to eat: it was a hobbit-hole, and that means comfort. [/INST]  ###Response: The excerpt is fiction. This passage is from J.R.R. Tolkien's novel 'The Hobbit,' which is a work of fantasy literature. The presence of a hobbit, a fictional creature, and the detailed description of its living environment, further indicate that the text is a work of imagination and not a factual account grounded in real-world events or experiences.