The discussion centers on the concept of "absolute relative approximate error," which is calculated using the formula ((x_present - x_previous) / x_present) * 100. The term "absolute" refers to the size of the error, while "relative" indicates its relation to the exact value, which is often unknown. The confusion arises from the purpose of finding an approximate solution when the exact value is not available for comparison. Instead, the approximate value serves as the basis for calculating the relative error. This understanding clarifies the reasoning behind using the term "absolute relative approximate error."