The passage discusses the phenomenon of counterfactual thinking, highlighting that people spontaneously create counterfactual alternatives to reality for various reasons. These reasons include explaining the past, preparing for the future, implicating various relations (including causal ones), affecting emotions, and supporting moral judgments. Additionally, the passage mentions that the ability to create counterfactuals develops throughout childhood and contributes to reasoning about other people's beliefs. Option C effectively encompasses these key points, making it the most accurate summary of the passage. Option A focuses primarily on the preparation for the future aspect, neglecting the broader reasons for creating counterfactual alternatives. Option B does not emphasize the developmental aspect and various reasons for creating Option D inaccurately suggests that counterfactual thinking helps reverse past and future actions, which is not the main point of the passage, and it oversimplifies the role of counterfactuals.