Spearman's two-factor theory proposes that intelligence consists of two factors: general intelligence (G factor) and specific abilities (S factors). G factor is an innate general mental ability that is used in all cognitive tasks. S factors are specific learned abilities that vary between tasks. According to Spearman's theory, an individual's performance on a task is determined by both their level of G factor and the specific S factors required for that task. The theory provided insights into the nature of intelligence and implications for education, such as the need to develop both general and specific abilities.