Need help with Nurse Practice Act assignment regarding Competency

Hi all,

I have to do a Nurse Practice Act regarding the topic nursing competency. It said to

List some nursing actions under each of the above sections that would demonstrate competent performance by the nurse.

(1) Formulates a nursing diagnosis through observation of the client's physical condition and behavior, and through interpretation of information obtained from the client and others, including the health team.

(2) Formulates a care plan, in collaboration with the client, which ensures that direct and indirect nursing care services provide for the client's safety, comfort, hygiene, and protection, and for disease prevention and restorative measures. In order to demonstrate competency in this area,
(3) Performs skills essential to the kind of nursing action to be taken, explains the health treatment to the client and family and teaches the client and family how to care for the client's health needs.

(5) Evaluates the effectiveness of the care plan through observation of the client's physical condition and behavior, signs and symptoms of illness, and reactions to treatment and through communication with the client and health team members, and modifies the plan as needed.

I am confuse as to come up with examples.

For #1, Does it mean that I just make up a scenario of what task the nurse do to come up with a nursing diagnosis.? or an example to demonstrate competency would be the nurse has to attend school to learn about nursing diagnosis to be competent in that area?

Please guide me. Thank you