Final answer:
A full-scale exercise (FSE) is an operations-based exercise that creates a high-stress environment for participants to engage in rapid problem-solving and critical thinking.
Step-by-step explanation:
The type of operations-based exercise characterized by a high-stress environment that necessitates rapid problem-solving and critical thinking is called a full-scale exercise (FSE). These exercises are designed to simulate real-world critical incidents and emergencies in as realistic an environment as possible, demanding that participants engage in rapid decision-making and critical thinking to manage the scenario effectively. Such exercises often include the integration of multiple agencies and coordination of various functions, pushing those involved to swiftly analyze situations and react accordingly amid high-stress conditions.