This is a Principle Example question, which means the test provides us with a Principle and then we have to select which answer choice best embodies the Principle.
Here, the Principle is that challenge can provide self-knowledge; paying attention to one's physical/emotional reactions to challenge provides insight into one's weaknesses.
As we read the answer choices, we should examine whether the answer "checks off" the various components mentioned:
- someone is challenged
- she pays attention to her physical/emotional reactions
- she gains insight into her weaknesses
(A) looks pretty good. We definitely have a challenge and the potential to learn something from it. Is "understanding why the memory lapse occurred" a great fit for "paying attention to his/her physical/emotional reactions"? Maybe not, but I'd keep it for now.
(B) don't see any challenge being mentioned. Get rid of it.
(C) don't see any challenge being mentioned. Get rid of it.
(D) don't see any challenge being mentioned. 'Competition' is close, but not the same thing. You can win a competition without being challenged. There's also no aspect of gaining insight into weaknesses or analyzing one's own reaction to being challenged. Get rid of it.
(E) Public speaking is the challenge. Is someone studying her reactions to the challenge of public speaking and gaining insight into her weaknesses? No. She's just being admired for courage and feeling good about herself for doing something challenging.
It looks like (A) is the strongest fit, and indeed it is the correct answer.