What is defined as the processes by which people understand and make sense of others in a social environment?

The correct choice is social cognition, which refers to the mental processes involved in acquiring, processing, and storing information about other people and social situations. This encompasses how we perceive others, interpret their behaviors, and how those perceptions influence our judgments and interactions. Social cognition plays a crucial role in shaping our understanding of social dynamics, including forming impressions, making attributions about behavior, and interpreting social cues.

In contrast, social influence focuses on how individuals change their behavior or attitudes based on the presence or actions of others, rather than on the processes of understanding them. Social identity is about how individuals define themselves in relation to groups and how that identification affects their behaviors and perceptions. Social comparison involves evaluating oneself against others, which can impact self-esteem and self-perception, but does not directly pertain to the general understanding of others in a social context.