Final answer:
The statement pertains to a functional requirement since it outlines a specific action the system must perform. Non-functional requirements are about how a system performs an action, not the action itself.
Step-by-step explanation:
The statement 'The system should be able to generate a report' is an example of a functional requirement, not a non-functional requirement. Functional requirements specify what the system should do, such as the tasks, functions, or operations of the system. On the other hand, non-functional requirements define how the system performs a certain function, focusing on system attributes such as security, performance, maintainability, scalability, and usability.