There are three high-iq students in ted's literature class. but the one who submits the most imaginative stories is a student with average iq. what idea about intelligence and creativity does this example best illustrate

I believe the answer is: Intelligent students are not always the most creative students.

Human regions are divided into two major regions , the left side that control logical thinking and the right side that control creative thinking.
IQ test tend to focus on measurement of left brain's capability while the right brain tend to play a larger role in imaginative writing.