The Schachter-Singer Theory, also known as the two-factor theory of emotion, suggests that emotions are the result of both physiological arousal and cognitive interpretation. According to this theory, when we experience an emotional event, our body first reacts with physical changes, such as increased heart rate. We then interpret these changes based on the context, which leads to the identification of the specific emotion we are feeling. This theory emphasizes the importance of situational cues in shaping our emotional experiences. For example, if someone feels their heart racing while watching a scary movie, they may label that arousal as fear due to the context of the situation. Thus, the Schachter-Singer Theory highlights the interplay between bodily responses and cognitive processes in understanding emotions.