Which term describes an interpretation based on prior knowledge?

• A. Prediction
• B. Conclusion
• C. Inference
• D. Observation

Answer: (C)

Interpreting clues by applying what you already know is an inference. It means using evidence you observe and combining it with your background knowledge to decide what something means or what happened. For example, if you see dark clouds and smell rain, and you know storms often bring rain, you infer that a storm is coming. This goes beyond just noticing what you see (observation) and it isn’t about predicting what happens next or making a final judgment after weighing all information (conclusion). Inference is the fit because it explicitly links clues to what you already know to explain why something is happening or what it indicates.