Question

This competence is the ability to use the appropriate words in a particular situation

Answer 1

The correct answer is - Sociolinguistic Competence.

Sociolinguistic competence is the ability to use language and words that are appropriate to social contexts especially culture-specific contexts that include the norms, values, beliefs, and behavioural patterns of a culture. 

It also refers to the ability to select topics that are appropriate for a communicative event.

Answer 2

Pragmatic competence is the ability to use the appropriate words in a particular situation.

In linguistics, pragmatic competence refers to the ability to use language effectively in a contextually appropriate fashion. It is a fundamental aspect of communicative competence.

In 1983, Jenny Thomas introduced the term pragmatic competence in the article 'Cross-Cultural Pragmatic Failure'. She defined pragmatic competence as - The ability to use language effectively in order to achieve a specific purpose and to understand language in context.