Acharya Prashant explains that to truly act freely, one requires both observation and faith. He emphasizes that knowing the truth without acting upon it is a greater punishment than not knowing at all. Faith acts as a lubricant or an enabler that allows for frictionless action, preventing the paralysis that often occurs in the moment of action despite having knowledge. He notes that while deep observation theoretically leads to instantaneous change, faith is necessary to sustain that observation when it begins to offend one's sensibilities or becomes detrimental to the ego. Without faith, an individual is likely to suspend observation to protect their self-image. To observe effectively, one must maintain a distance from the world of shapes and forms, which is only possible through association with the real or the formless. Acharya Prashant distinguishes faith from courage, describing courage as a smaller term that usually applies to specific situations. He concludes that faith is essential because it enables a person to endure the pain that arises during the process of observation, allowing them to continue even when the truth is uncomfortable.