Final answer:
B. False
The statement that social skills instruction should only occur in natural settings is false. Social development can be supported by a blend of natural and structured learning environments.
Step-by-step explanation:
The statement 'Social skills instruction should only occur in natural settings' is false. Social skills can be taught and reinforced in a variety of environments, not strictly in natural settings. While it's true that the opportunity for social development in natural settings, like those in classroom environments and school settings, provides situations with high ecological validity where students can apply social skills in real-life contexts, instruction can also benefit from structured scenarios where particular skills can be modeled, practiced, and reflected upon. Moreover, the benefits of naturalistic observation do highlight the honesty of the data collected in real settings and the ability to generalize findings to real-world situations. However, this method is not the only way to educate students on social skills effectively.