Understanding determines word interpretation by shaping the context in which words are used and the knowledge a person possesses. The interpretation of a word is not solely based on its dictionary definition but is influenced by the listener's or reader's background knowledge, experiences, and cultural context. For instance, the word "home" can evoke different emotions and meanings depending on one's personal experiences with their own home or the homes of others. Data from cognitive linguistics and psychology support this, showing that individuals interpret words based on their understanding of the world around them.

Research conducted by Fauconnier (1994) in cognitive linguistics highlights the role of mental spaces in word interpretation. Mental spaces are temporary frameworks of understanding that we create to process information. When interpreting a word, individuals draw on their existing mental spaces to make sense of the word in the given context. For example, when someone says "I'm going to the store," the listener may activate a mental space that includes knowledge about stores, shopping, and the act of going. This mental space helps in interpreting the word "store" as a place where goods are bought, rather than a generic term.

Additionally, a study by Gernsbacher et al. (1990) in psychology demonstrated that word interpretation is influenced by the listener's prior knowledge. The study showed that individuals are more likely to interpret a word correctly if it is consistent with their existing knowledge. For example, if someone is familiar with the concept of "sustainability," they are more likely to interpret the word correctly in a sentence like "The company practices sustainable business practices.

Cultural context also plays a significant role in word interpretation. The same word can have different meanings across cultures. For instance, the word "gift" in American culture often implies a gesture of kindness or appreciation, while in some other cultures, it may be associated with a bribe. This cultural difference in interpretation is evident in research by Brown and Levinson (1978), who discussed the concept of politeness and how it varies across cultures.

In conclusion, understanding determines word interpretation by shaping the context, mental spaces, prior knowledge, and cultural background of the individual. This multifaceted approach to word interpretation highlights the complexity of language and communication, emphasizing the importance of understanding in conveying and interpreting meaning.