What is the term for a misinterpretation of a sensory stimulus?

The term for a misinterpretation of a sensory stimulus is "illusion." An illusion occurs when a person perceives something in a way that is not accurate, often due to contextual factors, previous experiences, or environmental cues. For example, seeing a stick on the ground and mistaking it for a snake is a common type of illusion, where the visual stimulus is real but misinterpreted.

When considering other terms provided in the question, a delusion is a fixed false belief that is strongly held despite contradictory evidence, while a hallucination refers to the experience of perceiving things that are not present, such as hearing voices or seeing things that do not exist. Paranoia involves thoughts and feelings of mistrust or suspicion, typically of others. These definitions clarify why the correct answer specifically identifies an illusion as the most appropriate term for the phenomenon of misperceiving a sensory experience.