Answer: Grandpa
After hearing that the story his grandfather is about to tell him contains "fencing, fighting, torture, revenge, giants, monsters, chases, escapes, true love and miracles", his Grandson declares that it "doesn't sound too bad and he'll try to stay awake." His Grandpa then thanks him for the vote of confidence.
Peter Falk plays the grandfather/narrator of the story and the grandson is played by Fred Savage.