Final answer:
The theory that refers to how we interpret our successes and failures is called attribution theory. Attribution theory suggests that we attribute our successes and failures to either internal factors or external factors.
Step-by-step explanation:
The theory that refers to how we interpret our successes and failures is called attribution theory. Attribution theory refers to how individuals explain the causes of events and behaviors. It suggests that we attribute our successes and failures to either internal factors (such as our own abilities or efforts) or external factors (such as luck or circumstances).
For example, if a student performs well on a test, they may attribute their success to their intelligence or hard work (internal factors). On the other hand, if a student performs poorly, they may attribute their failure to the difficulty of the test or distractions in the environment (external factors).