“Look, your worship,” said Sancho; “what we see there are not giants but windmills, and what seem to be their arms are the sails that turned by the wind make the millstone go.”
This part in the story demonstrates the relationship between Don Quixote and Sancho, being that they balance one another out. While Quixote is very imaginative, Sancho is realistic and these characteristics complement one another in that it is a sort of representation of reality. Mankind could not function properly without idealism and vice-versa, an idealistic world could not function properly without realism. By pairing these two characters together, the audience is able to perceive how hang an imagination and living in the real world is like. This can relate to everyone. When Don sees the windmills as giants, Sancho corrects him because, in actuality, they were indeed windmills. Humans often imagine the impossible despite living in reality. In that same way, Don Quixote is often imagining the impossible, while he was in the presence of reality, which is Sancho. http://sites.khas.edu.tr/bukalemun/chl_number1_edi_1.html