Final answer:
The phallic stage in Freud's theory is important for the development of social and communication skills and self-confidence.
Step-by-step explanation:
The stage in Freud's theory that is important in the development of social and communication skills and self-confidence is the phallic stage. This stage occurs between the ages of 3-6 years and is when children become aware of their bodies and recognize the differences between boys and girls. In this stage, there is a conflict called the Oedipus complex, where a child feels a desire for the opposite-sex parent and jealousy and hatred toward the same-sex parent. Successfully resolving this complex allows the child to develop healthy social and communication skills, as well as self-confidence.