Misunderstand (verb)

1. To fail to understand correctly or correctly interpret something someone has said or written.
2. To take something said or written in a wrong sense.

Origin:

Middle english misunderstooden, from old english misondrǣdan, from mis- + ondrǣdan to understand.

Examples:

1. He misunderstood her and thought she was angry when in fact she was just tired.
2. She misunderstood the instructions and ended up doing the task incorrectly.
3. I misunderstood your question and gave you the wrong answer.
4. He misunderstood the situation and acted in a way that was not appropriate.
5. She misunderstood the passage and thought it meant something else.