Final answer:
The Schachter-Singer theory of emotion indicates that emotion is a result of both physiological arousal and its cognitive interpretation, with the correct option being that the frontal lobes interpret the body's reaction.
Step-by-step explanation:
The Schachter-Singer theory of emotion, also known as the two-factor theory, suggests that physiological arousal and cognitive appraisal jointly determine our emotional experiences. According to this theory, it does not adequately specify the brain regions involved such as the temporal lobes or frontal lobes, rather, it emphasizes the interplay between physiological arousal and the subsequent interpretation of that arousal within the given context. Therefore, the correct answer to the student's question is that the theory says your frontal lobes interpret the body's reaction (b), which involves cognitive processes identifying the emotion based on both physiological signals and the situational cues.