Final answer:
The Schachter-Singer two-factor theory explains that emotions are the result of cognitive interpretations of physiological arousal in response to stimuli.
Step-by-step explanation:
The theory that explains the steps in emotions by focusing on how we interpret situations is the Schachter-Singer two-factor theory. This model proposes that emotions are composed of two factors: physiological arousal and cognitive. According to this theory, physiological arousal is interpreted in context to produce the emotional experience. For instance, if you encountered a dangerous snake, your sympathetic nervous system would cause arousal, leading to an increased heart rate and respiration. This physiological response would then be labeled cognitively as fear, resulting in the experience of that emotion in the given context. Other theories, like the James-Lange theory and the Cannon-Bard theory, propose different mechanisms for how emotions arise, but it is the Schachter-Singer theory that emphasizes cognitive interpretation of physiological responses.