Acharya Prashant explains that problems are not external entities separate from the individual; rather, they exist because of the way a person is. He uses the analogy of students in an examination hall to illustrate that while the external situation (the question paper) is the same, the internal state determines whether it is perceived as a problem or a cause for celebration. He emphasizes that no problem can be solved by changing external circumstances because the root is fundamentally internal. To find a solution, one must acknowledge that they are the cause of their own suffering and stop believing that the problem is something outside of themselves.