Which statement regarding social referencing is true?

The statement that social referencing signifies an infant's understanding of social cues is accurate because social referencing involves infants looking to caregivers or other adults for cues on how to respond to new and uncertain situations. This process is crucial for their emotional and social development, as infants use these cues to interpret and understand their environment. For example, when a child encounters a stranger or a new toy, they may glance at their parent to gauge their emotional response, which helps them decide how to act in that situation. This ability to interpret others' emotions and reactions demonstrates an emerging understanding of social interactions and cues crucial for developing social skills and emotional intelligence.

The other options do not encapsulate the primary function of social referencing. While emotional regulation may play a role in how infants respond to social cues, it is not the direct focus of social referencing itself. The concept is not limited to social settings, as it can occur in various contexts where an infant seeks guidance. Additionally, thriving in adversity relates to resilience rather than the understanding of social cues, which is at the heart of social referencing.