In which of the following two scenarios does Grace demonstrate that she has developed theory of mind?

(1) Grace accidentally pops Max’s red balloon. Max is furious and heartbroken. Grace tells her mother "Max thinks I did it on purpose."
(2) Grace and Max play contentedly side by side with their blocks. Max builds a tower and Grace builds two small houses.

a. scenario (1) only
b. scenario (2) only
c. scenarios (1) and (2)
d. neither scenario