Who is the narrator, can she or he read minds, and, more importantly, can we trust her or him?
Third Person (Limited Omniscient)
It might be tempting to label this story as told from an omniscient point of view. After all, the narrative gets into the heads of many different villagers at many different times. But realize that all the information we get is from the perspective of the villagers. We are limited to their point-of-view: we know what they know, and only what they know. At first, the children playing think the drowned man is a ship, and then a whale. We don't know he's a man until they realize he's a man. The villagers never know where the drowned man came from, so neither do we. They think he is called Esteban, so for the purposes of the story, he is Esteban.