Final answer:
People perform best at an intermediate level of arousal.
Step-by-step explanation:
The statement that people perform best at an intermediate level of arousal is true. According to the Yerkes-Dodson law, task performance is optimized when arousal levels are in a middle range. More specifically, simple tasks are best performed under higher levels of arousal, while complex tasks are best performed under lower levels of arousal. For example, taking an exam with extremely low arousal levels, such as boredom, can negatively impact performance, while having extremely high arousal levels, such as extreme anxiety, can also hinder performance.