Two friends quarreled over possession of a single orange without realizing that one of them simply wanted orange juice and the other simply wanted the orange peel to make a cake. this classic episode best illustrates that people sometimes fail to recognize?

This classic episode best illustrates that people sometimes fail to recognize win-win situations.

Explanation:

A win-win situation can be described as a situation in which all the parties having dispute over something can come with a solution which will benefit all the parties. A win-win situation turns out to be good for everybody that is involved in a particular situation.

In the following scenario, the dispute between both the parties could be resolved and both the friends could have settled with a win-win situation. But they failed to recognize this effort.  

the right answer is a