Final answer:
Attribution theory describes how individuals interpret events by attributing causes to behavior, considering factors like actor-observer bias and self-serving bias.
Step-by-step explanation:
The concept described in the question concerns the process by which an individual interprets events as being caused by a particular part of a relatively stable environment. This process is best defined by a) Attribution theory, which involves the ways in which people infer the causes of their own and other's behavior. Factors such as the actor-observer bias, where an individual has more insight into their own behaviors than those of others, and the self-serving bias, where individuals attribute successes to internal factors and failures to external factors, contribute to how an individual interprets events. The fundamental attribution error and confirmation bias are also related concepts where the former involves attributing others' actions to their dispositions and the latter involves seeking information that confirms existing beliefs.