Correct option is D
The Schachter-Singer two-factor theory proposes that emotion results from: (1) perception of a stimulus/situation, (2) physiological arousal occurs, and (3) cognitive interpretation/labeling of that arousal in the context of the situation. The sequence is: perceive situation → experience arousal → interpret/label the arousal → experience specific emotion. However, looking at option D more carefully, it appears there may be a printing issue with the options as the typical sequence should be perception → arousal → interpretation.
Information Booster:
1. Two-Factor Theory: Emotion requires both physiological arousal AND cognitive interpretation - neither alone is sufficient
2. Cognitive Appraisal: The same physiological arousal can result in different emotions depending on how it's interpreted in context
3. Classic Experiment: Schachter and Singer's famous study used epinephrine injections and different social contexts to demonstrate cognitive labeling
4. Context Dependency: Environmental and social cues help individuals interpret their arousal state (e.g., arousal in a scary situation = fear; same arousal at a party = excitement)
5. Modern Relevance: This theory helped establish the importance of cognitive processes in emotional experience