This is seeing and reacting to what you see.
Are you using a safe routine to deal with things. For example in a busy road you go to give way to let a car coming towards you through. But you have not checked your mirrors so are unaware you have a large van behind you which will mean the road is blocked anyway.
Do you know the best way to deal with a car coming towards you and the gap is on the other side of the road. In this situation you would normally wait opposite the gap so the other car can use it.
When reacting to other vehicles are you using your controls properly. Did you swing into the gap and got too close to another car.
Sometimes the effect of a fault will be marked rather then the cause of a fault. This section can be very broad and will cover a number of things that affect how you deal with other traffic. Remember that you are expected to be safe with a bit of confidence. Confidence being made up of skill, judgement and experience.