1) Differentiated literature circles aim to engage students in critical thinking through discussion of texts. It promotes collaboration and social construction of knowledge. 2) Literature circles are based on social constructivism and the idea of a "more knowledgeable other" who facilitates discussion. They develop positive reading attitudes and provide social opportunities students enjoy. 3) Benefits include developing responsibility, engagement, collaboration, scaffolding reading difficulties, and exciting teaching. Literature circles provide a supportive environment for discussion and learning appropriate literary responses.