An idiom is a group of words established by usage as having a meaning not deducible from those of the individual words. The idiom "Bite the bullet" means to face a difficult situation bravely. This expression originates from the historical practice of having patients bite on a bullet during surgical procedures as a way of coping with the pain when anesthesia was not available.
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Thus, the correct interpretation of "Bite the bullet" is to bravely confront a challenging situation.