Final answer:
Identity formation is indeed a dual process involving internal personal identity development as well as social interactions that shape identity, which aligns with Erikson's theory of adolescent development.
Step-by-step explanation:
The statement that identity formation involves two parallel moves - INTERNAL and SOCIAL - is TRUE. In the process of identity formation, especially during adolescence, individuals experience psychosocial changes which include developing a personal identity, which is the internal aspect, and a social identity that reflects their interactions with society. Erikson's theory of psychological development specifically points out that adolescents face the task of identity versus role confusion, where they explore different selves to establish a strong sense of identity, making choices between their own beliefs and societal expectations. Identity is made up of various components, represented in intersection wheels, that change through interactions between our biological makeup and psychological experiences.