die Lesart
interpretation
A particular way of interpreting and understanding a text, event, or situation.
Laut seiner Lesart der Ereignisse war er völlig unschuldig.
According to his interpretation of events, he was completely innocent.

interpretation / reading
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interpretation
A particular way of interpreting and understanding a text, event, or situation.
Laut seiner Lesart der Ereignisse war er völlig unschuldig.
According to his interpretation of events, he was completely innocent.

The word consists of 'Lese-' (from the verb 'lesen' (to read)) and 'Art' (way, method). A Lesart is therefore literally a particular 'way of reading' or interpreting.
Jeder Historiker hat seine eigene Lesart der Quellen.
Every historian has their own interpretation of the sources.
This word is often used with possessive pronouns or adjectives to assign a perspective. Typical phrases are 'meine Lesart' (my interpretation), 'die offizielle Lesart' (the official interpretation), or 'eine alternative Lesart' (an alternative interpretation).
Das ist zumindest meine Lesart der Situation.
That is at least my interpretation of the situation.
In this meaning, 'Lesart' (reading) is a technical term from academia, especially literary studies and historical research. It is used when comparing different text versions in old manuscripts or printed editions.
Für ihre Doktorarbeit analysierte sie eine seltene Lesart in einem frühen Druck.
For her doctoral thesis, she analyzed a rare reading in an early printed edition.
version
'die Version' and 'die Lesart' can both mean that there is more than one form of, or way of looking at, something. 'Version' fits very well with texts, software, products, or also different accounts of an event. 'Lesart' is more about how someone understands and interprets a text, an event, or a situation. Learners may confuse the words because both occur with stories or texts. As a simple guide: a 'Version' is often a version or account, while a 'Lesart' is more of an interpretation.

Nach dem Gespräch blieb ihre Lesart der Situation anders als meine.
After the conversation, her interpretation of the situation remained different from mine.
Die neue Version der App funktioniert auf meinem Handy viel schneller.
The new version of the app runs much faster on my phone.