Ben Goertzel wrote:
...
On the other hand, the notions of "intelligence" and "understanding"
and so forth being bandied about on this list obviously ARE intended
to capture essential aspects of the commonsense notions that share the
same word with them.
...
Ben
Given that purpose, I propose the following definition:
A system understands a situation that it encounters if it predictably acts in such a way as to maximize the probability of achieving it's goals in that situation.

I'll grant that it's a bit fuzzy, but I believe that it captures the essence of the visible evidence of understanding. This doesn't say what understanding is, merely how you can recognize it.

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