Her misinterpretation of my joke made her think I was criticizing her.

misinterpretation 是由前缀 mis-（表示“错误”）和名词 interpretation（解释、理解）组成的复合名词。interpretation 来自动词 interpret（解释、翻译），加上名词后缀 -ation 构成名词。 misinterpretation 字面意思是“错误的解释”，即“误解”。