So if I’m being rigid, I’d say A, but that Mike’s explanation is the caveat.
With the cantina characters in Star Wars, within the world of the story, we can extend the problem of Empire Rule to them, but I can’t think of any conflict we see them experience or relate in the film from empire rule. Assuming there isn’t any conflict for them in the movie, I’d say the storytelling causes us to extend the problem to them because they are living beings within the story world, but that structurally they’re not considered OS characters. But if, as Mike says, they represent or otherwise relate a storypoint to the audience, they suddenly are OS characters.
So I think we’re giving different answers that are actually the same, if that makes sense.
I have a story I’m toying with about a group of women riding across an ancient mystical and dangerous land to reach a goal. I really wanted to keep the storyform to just their group and the bad guy, but as the idea develops I find them stopping in villages along to do different story related things. If I keep the story to just the group of women, it feels much different than if I start applying these points to those in the villages they stop at along the way. But applying the storypoints to those in the villages makes it feel like a story with a much bigger scale, so I think I’m going to have to go that way.