I am still confused why they used the terms "observation" When in actuality it's more of "interaction" With the objects
No, it's literally observation. Until the results are observed, it is actually in a superposition between being true and false. The example we were given is the glove box example, where if a pair of gloves were put into two boxes, one for the left and one for the right, and then separated over a long distance, until the first box is open and which half of the glove is actually observed, it is quite literally both at the same time (not considered, it straight up is), and the other box is the same case, which sounds stupid, until you realize, once again, that's how atoms actually work at a quantum level.
There's a great documentary on this on YouTube called Quantum Theory. It's a bit outdated and doesn't cover some recent discoveries in the field, but it's a great crash course into it if you are interested.