The correct answer is the fundamental attribution error.
The fundamental attribution error (FAE) refers to the tendency to attribute our own behavior to external or situational factors outside our control, while attributing others' behavior to factors internal to them or within their control. In this instance, where Terri heard the story of how a man was forced to steal food because his children were starving, and said that he was stupid, irresponsible, and probably dishonest, her comment reflects FAE, where she is attributing the man's behavior to factors internal to him (his personality).
