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To understand resolution in literature, we must first understand what is called THE CONFLICT.

At first we may take those words literally. For example we may take resolution to be THE RESOLVING OF VARIOUS WHOLES INTO THEIR COMPONENT PARTS, or colloquially as in the sense of resolving a particular complicated situation or event.

Whereas conflict can be taken to refer to as A SITUATION WHERE THE COMPONENTS OF A SYSTEM ARE AT ODDS WITH EACH OTHER. Or colloquially as a fight or misunderstanding or mayhem etc.

Now relating to fiction then, we have our CONFLICT as a situation that provides the impetus and the action. The part where the characters are plunged into a shattering situation which usually requires them to make an important decision. Examples of conflict in books and movies might be the part where a wicked stepmother stops a girl from attending a palace ball--whattup Cinderella-- or the part where a cute boy runs away with wife of a powerful king--whattup Iliad.

Now after the conflict comes the climax, where the situation is heightened and the height really gets to a high and then boom! You're hit with the twists and the protagonist dies or the bad guy dies. And the comes....

The RESOLUTION, also known as the DENOUEMENT.

This is where the pieces are then restored again. The conflict is "resolved", Peace falls upon the city once more, or if there's no chance of peace, at least the storm is over for the moment and the characters have the chance to live on in the mind of the audience.

A denouement or resolution is a particularly important and underestimated part of literature writing. It is smilar to a strong finish in athletics. Without a good resolution the audience might leave the story feeling terrifically disappointed.

Imagine if Cinderella had ended when the girl lost her shoes. Or Troy ended where Achilles killed Hector. Without the strong satisfactory finish of Cinderella becoming a princess and the invasion of Troy as Homer told it, those works of art would never having remained beloved in our hearts till now.

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(As an addition, another thing to take into consideration in fiction writing is the SETTING, where you introduce your characters and set the stage and ambience of the story. (This is the calm before the storm. The storm being THE CONFLICT,)

Cheers.