The term 'CHARACTERS IN 'THE HOBBIT'' can be summarized by the five-letter word 'RUNES'. This refers to the characters of the Dwarves in J.R.R. Tolkien's novel The Hobbit, who are known for their skill in crafting runes. The Dwarves are led by Thorin Oakenshield and are a major part of the story, as they accompany Bilbo Baggins on his quest to reclaim their lost treasure from the dragon Smaug.