The Exposition includes the setting, characters, and conflict.
Setting is the when and where. Ex. In a castle in a far off land.
Characters includes mainly the main or important people in a narrative. Ex. Goldilocks and the Three Bears (They are the characters of the story).
Conflict includes internal and external conflict. An Internal conflict is character vs. self (thoughts, feelings, and morals). An External conflict is character vs. character, character vs. nature, or character vs. social.