You can see because of light entering your eye. Light moves like a stream. The cloth blocks some of the light but not all of it. From far away, the light coming through is dispersed to much for you too see what is on the other side of the cloth. As you move closer, you get more concentrated streams of light from the other side making in into your eye. Once they are strong enough, you can get a picture of what’s on the other side.
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