Final answer:
Postformal thinking is best described by abstract reasoning, reflecting a stage of cognitive development where logic is combined with emotion and context-based principles, extending beyond Piaget's formal operational stage.
Step-by-step explanation:
The statement that best describes postformal thinking is that it involves decisions based on situations and circumstances, integrating logic with emotion, and the development of principles that are context-dependent. Unlike previous stages identified by Piaget, such as concrete operational thinking, preoperational thinking, and formal operational stage, postformal thinking recognizes the variability in potential solutions depending on different scenarios, and acknowledges the role of past experiences in problem-solving. While concrete operational thinking is characterized by logical thought about real events and preoperational thinking by symbolic thought without logical manipulation, postformal thinking is more advanced. It transcends these earlier stages and embodies abstract reasoning, allowing adults to handle emotionally charged issues more skillfully than adolescents who are typically in the formal operational stage. Therefore, the correct answer to which statement best describes postformal thinking is Option 2: Abstract reasoning.