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This is a difficult question to answer as you will have to admit failure. The best approach is to briefly describe the problem first and then spend the majority of the question showing how you developed the resolution. Try and end your answer by describing a similar situation that has happened since where you used what you have learned to overcome the problem, and explain the value of learning from mistakes quickly.
Here the interviewer wants to use examples of past behaviour to predict how you may react in the future. Before the interview think back to previous experiences in the workplace with examples of how you developed specific skills and improved a specific process in the workplace. For example, did you ever have suggestions taken on board by a manager, even in a part-time job? Remember the STAR approach - describe the Situation, identify the Task, what Action you took, and the Result of your action.
Give definite examples of your skills and accomplishments. Be positive, and emphasize how your background matches the job description. Mention any software packages and spreadsheet software you are familiar with. Also let them know if you have advanced knowledge of any of the software. There are almost no jobs where you will be the only candidate so you must differentiate yourself from your competition.