The person then thinks about the situation X in a particular way and characterizes/evaluates it, for instance, “This X is scary.” This is a meta-response, and the state is a meta-state about X. This is what Paul Watzlawick has called “second-order reality.” This is where people may differ wildly, particularly if they are from different cultures, and it is at this level where many conflicts and problems (and many solutions) exist.
The person could just as well conclude that X is “boring” or “exciting,” or “challenging,” or is an opportunity to “learn more about their Buddha nature,” etc. The persons response will depend on the understanding that they apply to the event, and changing this understanding through content reframing can make a huge difference in the persons experience.