What literary term describes an indirect reference to a person, place, or event?

An allusion is a literary term that refers to an indirect or passing reference to a person, place, event, or piece of literature, typically without providing a detailed description. Allusions rely on the reader's familiarity with the subject being referenced, inviting them to make connections or to draw deeper meanings or insights based on their prior knowledge. For instance, a character in a story might make an allusion to a famous historical figure, implying qualities or situations associated with that figure without explicitly stating them.

In contrast, a metaphor directly states that one thing is another, creating a more vivid comparison, while a simile uses "like" or "as" to make a comparison more explicitly. Hyperbole involves deliberate and obvious exaggeration, not referencing other works or ideas indirectly. Thus, in the context of literary devices, allusion is specifically recognized for its indirect nature, making it the correct answer in this instance.