In this exercise, students are asked to differentiate between facts and opinions. A fact is a statement that can be proven true or false, while an opinion is a subjective statement that reflects personal beliefs or feelings. For example, '1924, the Model T Ford could be purchased for $290' is a fact because it can be verified with historical data. In contrast, 'The Model T was the most important invention of the first half of the century' is an opinion, as it reflects a personal judgment that may vary from person to person. Understanding the difference between these two types of statements is crucial for critical thinking and analysis.