note the usage of names and pronouns, "james" & "the old man". this alone can confirm it as third person, as first person uses "i" and the like, while second person uses "you" and the like.
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Answer from: Quest
the answer should be the first one. "many people find his lyrics very moving."
it by far makes the most grammatical sense and is very objective, removing any first person from the original sentence and keeping with the sentence fluency.
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