Which step of perception is involved when you wonder if the person who smiles at you across the room is interested in romance or is just being polite?

Answer: Interpretation

Explanation:

Interpretation is defined as the mechanisms in which meaning gets associated with certain stimuli through understanding. The effect of stimuli on particular person can be understood in different ways by him/her as per personal thinking and factors. Thus, it produces different interpretation of stimuli.

According to the question, interpretation is the stage that is involved in understanding the emotion of romance or politeness shown by a person who is smiling at another person. The person can understand meaning behind smiling as per their understanding.