I think maybe the anxiety factor addressed is "The applicant won't panic and lock up" thing. I recall simply stating that spins can be a dramatic event for someone who spends most of the time flying straight and level.
They're just looking for you to explain that many pilots are afraid of doing spins, and learning the cause of a spin and proper recovery helps remove the anxiety and many causes of unintentional spins.
And talking through how spins should be a normal thing to be comfortable with. I suggest if you have a spin certified aircraft, you encourage the student to actually go through the procedures, rather than just talk about it.
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