- Step 1: Analyze: "Principal" means main or a school leader; "principle" means a rule or belief.
- Step 2: Context suggests a rule or basis for the decision, so "principle" fits.
- Step 3: Evaluate: (1) Principle (correct), (2) Precept (similar but less common), (3) Premise (basis for argument), (4) No error (incorrect, as "principal" is wrong).
- Step 4: Confirm: "Principle" is the standard term for a guiding rule.
- Step 5: Option (1) is correct.