Practical intelligence is best described as:

Practical intelligence is best understood as the capacity to apply knowledge and skills to real-world situations, effectively navigating everyday challenges and tasks. It involves utilizing information in a way that demonstrates common sense, street smarts, and adaptability in various contexts. Individuals with high practical intelligence can assess situations, solve problems, and make decisions that lead to favorable outcomes in their daily lives.

The other options describe different types of intelligence. Theoretical problem-solving ability pertains more to academic or formal reasoning skills, which may not translate as directly to practical applications. Creative thinking patterns emphasize the generation of novel ideas rather than the application of knowledge in practical settings. Abstract reasoning skills highlight the ability to understand complex concepts but do not necessarily involve the effective use of this understanding in everyday situations. Thus, the defining characteristic of practical intelligence centers on its real-world applicability, aligning seamlessly with the correct answer.