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To "discern" means to see clearly and recognize something, often referring to the ability to distinguish between different elements or to understand something that may not be immediately obvious. This word implies a degree of insight and clarity that allows someone to perceive nuances or subtleties effectively. When someone discerns, they are not just looking at a situation or information superficially; instead, they are analyzing and comprehending it deeply.

In contrast, the other options suggest negative or incorrect interpretations. Overlooking important details implies a failure to notice key aspects, which is the opposite of discernment. Misunderstanding indicates a lack of clarity and comprehension, while exaggerating or embellishing involves distorting the truth rather than recognizing it. Therefore, to discern is to have a clear and informed understanding, making it a positive cognitive skill.