Final answer:
The process of holding extreme beliefs on the basis of a single incident and applying them inappropriately to dissimilar events or settings is known as overgeneralization.
Step-by-step explanation:
The correct answer is b. overgeneralization. Overgeneralization is the process of holding extreme beliefs based on a single incident and then applying them inappropriately to dissimilar events or settings. This fallacy occurs when someone forms a conclusion using too little evidence to support it. An example of overgeneralization is when a person assumes that all students in a class have test anxiety just because a couple of students were nervous before a test.