Final answer:
The statement is true; individual differences in psychosocial functioning are stable and have significant social implications. These differences are visible in the development of personal identity during adolescence and are captured by stable personality traits like the Big Five, which are influential in social interactions.
Step-by-step explanation:
The statement that "Individual differences in psychosocial functioning are highly visible, relatively stable, and socially consequential" is TRUE. Psychosocial changes, especially as observed during adolescence, involve the development of a stronger sense of personal identity and personal values. Moreover, individual differences in personality, such as those described by the Five Factor Model, which includes openness, conscientiousness, extroversion, agreeableness, and neuroticism, are relatively stable over time and have significant social implications. These traits are relevant to how we interact with others and are partly shaped by and have impacts on our social environment. Hence, individual differences are not only stable and visible but also have profound consequences on social functioning and relationships. Research supports the notion that certain personality traits are relatively stable across different cultures and ethnic groups and show some heritability, indicating a biological component to these traits.