At this point in the story, the character looks at himself. He takes stock of where he is in the conflict and--depending on the type of story--has either of two basic thoughts. In a character-driven story, he looks at himself and wonders what kind of person he is. What is he becoming? If he continues the fight of Act II, how will he be different? What will he have to do to overcome his inner challenges? How will he have to change in order to battle successfully? The second type of look is more for plot-driven fiction. It's where the character looks at himself and considers the odds against him. At this point the forces seem so vast that there is virtually no way to go on and not face certain death. That death can be physical, professional, or psychological.