Essentially, narrative writing is storytelling, either real or imagined. It goes beyond simply laying out the facts: it allows the reader to experience events, emotions, and characters first-hand. Narrative writing uses plot, character development, setting, dialogue, and vivid descriptions to build a compelling storyline that not only informs but also entertains and emotionally engages the reader.
You need to respond to a prompt by writing a short story that reflects the title that you've been given.
You need to set up a conflict/problem that is resolved after a climax.
You must reveal character through action.
You have to show, don't tell.
You must use vocabulary and literary devices to achieve effects that are relevant to your mood. (For example, you might use a metaphor that emphasises danger if you're trying to achieve a tense mood.)
Reading more is never a bad answer, but try to be purposeful in your reading. The short story is a particular narrative form, and it moves through its plot in a very economical manner. Try specifically reading short stories rather than novels to prepare for this.
Also, try to be more active in your reading. You can do this by:
Plotting out the story in bullet point form and seeing how it follows Freytag's pyramid.
Underline interesting authorial choices used by the author and considering their effect on the reader (Level 1).
Circling the start of sentences to see how the author progresses through their work and avoids repetition.
Making notes about characterisation by seeing which aspects of STEAL the author uses.
Rewriting the narrative from a different perspective.