woman (actually the aunt of the two children) takes offense, however, and challenges him to try and do a better job of it.

The bachelor does so with bravado by telling the children an unconventional tale in which a "horribly good little girl" is gobbled up by a wolf because her three medals of honour clink against one another and reveal where she is hiding. The chidren an entranced by a tale which goes against the grain of "a decent story," (once again, much to the irritation of the disgruntled aunt). Before saying goodbye, he reminds her that he did indeed keep the children quiet, which was more than she could do.

The climax of the story within the story is of course when the good little girl almost (but not quite) escapes from the jaws of the ravenous wolf; the second one on "real time" is no real climax at all - just another appropriate retort made by the young man before parting company. This rather deflated ending is done on purpose as an anti-climax to take a bit of hot air out of the fuddy-duddy aunt's inflated ego (which it does).

Saki shows by this that understatement can often be more powerful than exaggeration when employed the right way.

As a literary device, the rising action comprises

all decisions, characters’ flaws and background circumstances that together create turns and twists leading to a climax.

Therefore, this is not just one isolated moment in the story, but the combination of several small moments that, as they occur in sequence, raise the energy in the storyline and start building up engagement in the reader. 

Interestingly, the rising action in "The Storyteller" mirrors these same dynamics among the characters because this moment occurs when the children become bored by their aunt's story. When the children complain about the story, the bachelor traveling next to them in the carriage tells the aunt she may not be a successful storyteller.

The aunt is piqued by the comment and argues storytelling is not an easy thing to do. As they continue to go back and forth, the aunt finally gives up and asks the bachelor whether he would like to tell the children a story. This was not said in kind, but as a way to show him that it was, indeed, very hard to keep children interested in stories.

The bachelor accepts the challenge and asks the children to sit and listen to the story he is going to tell him. This is the highest moment of the story, which is the climax. All that built up to that very moment was the rising action.

This is actually a story within a story, so you have two of everything above. 

Introduction: An aunt and her three charges are on the train and the children are being disruptive.  She cannot control them. 

Problem:  It is annoying another passenger, a young bachelor.

Rising Action: The bachelor decides to tell them a story.  He expertly fields their questions about why there were no sheep, why there were no flowers in the garden, what color were the pigs, what color was the fox.

Climax: The bachelor finishes and tells the woman that at least he kept them quiet for ten minutes.  It solved his problem of annoying children.

Resolution: He leaves the train and thinks that the poor woman is now going to be pestered for improper stories.

SECOND STORY:  The bachelors story

Introduction: A good little girl is introduced.  She won three medals for being so good and was allowed to roam the Prince's garden. The garden is filled with pigs.

Problem: The wolf comes to eat one of the pigs.  But he sees the little girls and chases after her

Rising Action:  The wolf searches for her but cannot smell her because of the myrtle trees

Climax:  The wolf hears her medals clinking, finds her, and eats her

Resolution: All that is left of her are her shoes, her clothes, and her medals.