The document introduces SOLO taxonomy, which divides knowledge into five levels - pre-structural, uni-structural, multi-structural, relational, and extended abstract. Each level represents a different depth of understanding. An example using the question "What do you know about football?" demonstrates how a response could progress from the pre-structural level of hardly any knowledge to the extended abstract level of making connections and adding new insights. The document suggests SOLO taxonomy can help assess understanding and determine next steps for learning.