Answer: induction of epithelial cells by paracrine signaling from mesenchymal cells.
Step-by-step explanation:
Mesenchymal stem cells can be found in bone marrow and are vital in making and the repairing or skeletal tissues.
Based on the information given in the question, the developmental concept that the example best describe is the induction of epithelial cells by paracrine signaling from mesenchymal cells.