Final answer:
The Schachter-Singer theory, or the two-factor theory, is the one that suggests our interpretation or cognitive appraisal of a situation is the primary cause of the emotion we experience.
Step-by-step explanation:
The theory that assumes our interpretation or appraisal of a situation is the primary cause of emotion is the Schachter-Singer theory, also known as the two-factor theory of emotion. This theory posits that physiological arousal is very similar across the different emotions, thus the cognitive appraisal of the situation is what distinguishes one emotion from another. The key component here is that our thoughts about a situation, or our appraisals, come before the emotional experience, and based on this cognitive appraisal, the body responds with physiological arousal.
Magda Arnold and Richard Lazarus further developed the concept that our emotions are determined by our appraisal of the stimulus. This appraisal is often immediate and unconscious and precedes the emotional response, making it the cornerstone of how we experience different emotions according to their respective theories, often referred to generally as appraisal theories.