Prior-hypothesis bias is the tendency for people with strong prior beliefs, when confronted with a choice, to make their decisions based on their beliefs even if their beliefs are false.
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Decisions are important in day to day life. It is very essential for a person to think about all the alternatives and the consequences of each of them before making right decisions. Decisions that we take in certain situations has a great impact on both the decision maker and the people surrounding that person.
In some situations, some people make decisions based on the beliefs that are prior to certain relationship between some variables. They even know that those beliefs are wrong sometimes even they have some evidence for it. This tendency of the people refers to prior hypothesis bias.
The correct answer is Hyperbole.
Hyperbole refers to exaggeration of a statement, which should not be taken too seriously, just like in the given statement above, wherein even the stoplights show courtesy to the king's fancy car, it is a form of a hyperbole.