Paradox of fiction

In short, the paradox of fiction is about how people respond emotionally to fiction while, at the same time, requiring truth (non-fiction) for emotional investment.

P1: If emotions are evoked by fiction then the subject must believe the fiction to be true
P2: The subject doesn't believe fiction to be true
P3: Fiction (movies, stories, plays, etc. - not real) evokes emotions in the subject
So,
C: Fiction shouldn't evoke emotions in the subject (from P1 and P2 - modus tollens)

But C contradicts P3.

The proposed solutions to the paradox:

1) Thought theory: Deny P1. Genuine emotions can be experienced through fiction.

2) Realist/illusion theory: Deny P2 - fiction is true/real

3) Pretend/simulation theory: Deny P3 - the emotions experienced through fiction are less real than if it were non-fiction.

I ask this question because I was talking to this other person about happiness and s/he said happiness isn't linked to truth. This could be understood in two ways. First, truth isn't obliged to happiness and vice versa. Second, there is no requirement for truth in our happiness.

It's the second interpretation that bothers me. I think, also everybody I guess, that to be happy/sad about something, say x, x has to be real/true. A hint to this is provided by the frequent question, ''Really?'' that follows any exceptional event e.g. winning the lottery or an olympic event. Before we invest ourselves, we always confirm the truth.

Given this is so, we can eliminate solution 1 for the paradox.

Solution 2 is a contradiction in itself - To say ''fiction is real''. So, we can eliminate it too.

We're left with solution 3. This seems to be the only reasonable solution - fiction-evoked emotions are not that intense as is when it's real. It also agrees with my view on genuine happiness (truth based) outlined above.

However...

A certain point that needs to be considered is that our emotions regarding something, say z, aren't determined by the truth value of z. Rather it's the particular arrangement of people, things, events that trigger emotion. What I mean is the arrangement in Rome and Juliet that evokes sadness is the futility of their love. The truth and falsity of this particular arrangement is of secondary, if at all it's relevant, importance to our emotions. People verify an event only to decide whether they should continue their emotional response to that particular event. The emotion has already been evoked.

Looking at it this way, the fiction paradox ignores this simple fact. Emotions are not about truth and falsity - something the paradox depends on. Emotions are about arrangements of people, things, events, etc.

Your comments?