Misunderstanding

From Teflpedia

Misunderstanding occurs when a communicator who is receiving a message fails to fully understand the intended message and instead understands a different message, which may subtly or completely different from the intended message. It can be contrasted with, and forms a continuum with, partial understanding, and non-understanding.

It can also be split into misreading and mishearing.

Rectifying misunderstanding is an important practical language skill.