Final answer:
The difference in how the actions of a local resident and a policeman are perceived, with the resident labeled a murderer and the policeman's actions attributed to stress, exemplifies the fundamental attribution error. The correct answer is option D.
Step-by-step explanation:
The scenario presented where different reasons are provided for similar violent actions, specifically a local resident being labeled a murderer while a policeman in a similar situation is ascribed personal issues as a cause, exemplifies the fundamental attribution error.
This psychological concept explains how people tend to attribute others' actions to their character traits while attributing their own actions to situational factors. When assessing the policeman's actions, people attributed his behavior to external pressures such as depression and financial stress, rather than labeling him as inherently violent or aggressive, which might have been the case if the fundamental attribution error was not at play.