Although Eduardo has repressed his own homosexual desires, he is distressed by a false suspicion that many men frequently stare lustfully at his body. According to psychoanalytic theory, Eduardo's thinking best illustrates:

projection                                            

Explanation:

Projection: In psychology, the term "projection" is referred to as one of the defense mechanisms which was proposed by Sigmund Freud in his theory of psychoanalysis. An individual subconsciously uses the "psychological projection" to cope-up with different emotions or feelings that are being considered as difficult.

Through projection, an individual projects his or her undesirable emotions or feelings on someone else instead of accepting it or dealing with those undesirable or unwanted feelings or emotions.

In the question above, Eduardo's thinking best illustrates projection.