Chloe can clearly sense when her sister's teasing is intended to be friendly fun or a hostile put down. this best illusrates that that chloe has developed a

It illustrates that Chloe has developed a theory of mind.

Explanation:

The theory of mind is basically the capacity that human beings develop in order to attribute mental states to themselves and to others.

These mental states can be desires, knowledge, intents, emotions.

you can show her once, and if she doesn't do it, do what i do: i take away one of her privileges until she learns. it worked for my sister but note every child is different. or you canput her on 'time out' if she doesn't learn.