Your question is React Fundamentals. Take a moment with it on the right.
Talk me through your thinking if you like. When you're confident, submit your answer and I'll grade it like a real screen (7/10 or better passes).
Explain your understanding of React basics, including hooks, the Virtual DOM, and managing state. Cover how function components use hooks, how React reconciles updates through the Virtual DOM, and how state should be owned and shared. Include practical examples and distinguish local state, lifted state, and side effects.