Final answer:
Joe and Shmo observing a bird moving in different directions implies that they are in different reference frames. The correct understanding of motion in this context is that it is relative and it must be described with respect to a chosen frame of reference.
Step-by-step explanation:
When Joe says the bird is moving to the right and Shmo says it is moving to the left, it indicates that they must be in different reference frames. The motion of an object is always described relative to some chosen frame of reference. Therefore, the perception of movement depends on the observer's point of view. Galileo's principle, which applies to this situation, states that motion must be described relative to a reference frame, and observers in different reference frames moving at constant speeds and directions relative to each other will describe motion differently.
To answer the example of Joe and Shmo observing the bird, the correct answer is (A) Joe and Shmo must be in different reference frames. This scenario is analogous to the example provided where two boats moving in opposite directions pass each other. A person in Boat A and a person in Boat B would describe each other's motion differently due to being in different reference frames.