interpretation
A particular way of explaining or understanding something.
An interpretation is the act of explaining what something means or understanding it in a particular way. When you read a poem and explain what you think the author is trying to say, you're offering your interpretation. When an interpreter provides an interpretation of a speech from Japanese to English, she's converting the words so others can understand them.
Different people often have different interpretations of the same thing. Two friends might watch the same movie and have completely different interpretations of why the main character made a certain choice. One might think the character was being brave, while the other interprets the same action as foolish. Both interpretations could be valid if they're supported by what actually happens in the movie.
The word also applies to performance. When a pianist plays Beethoven, her interpretation is her unique way of expressing the music: how fast or slow she plays, which notes she emphasizes, what feelings she brings out. Ten pianists playing the same piece will give ten different interpretations.
Interpretation involves thinking about what information means and using judgment to explain its significance. You consider facts and then reason about what they mean, why they matter, or how they connect to something larger. A good interpretation shows careful attention and reasoning.