What are the three steps of the agent workflow in function calling?

• A. Plan, Execute, Review
• B. Observe, Think, Act
• C. Think, Act, Observe
• D. Decide, Act, Verify

Answer: (C)

In function-calling workflows, the agent operates in a think–act–observe loop: first it thinks through the goal, deciding which function to call and what inputs are needed; then it acts by performing that function call; then it observes the result, updates its understanding, and uses that feedback to plan the next step. This cycle repeats, allowing the agent to adapt after each action based on what the function returned. The idea is to reason before acting and to learn from the outcome right away so the next move is better informed. Other sequences shift observation or verification out of this immediate feedback flow, which can slow or misalign the agent’s progress.