Explain the Schachter-Singer theory of emotion?

The Schachter-Singer theory, also known as the two-factor theory of emotion, posits that emotion is the result of a two-step process: physiological arousal and cognitive labeling. According to this theory, when an individual experiences physiological changes, they interpret these changes based on the context, which leads to the identification of the emotional experience. Essentially, emotions are shaped by both bodily reactions and the mind's interpretation of those reactions in a given situation. This theory emphasizes the role of cognitive appraisal in the experience of emotion.