Correct practical wisdom is like the awareness of the existential reality of a snake;
This which agrees with reality is practical wisdom; likewise the contrary does not agree with reality.
Commentary
In this verse the sage is dealing with practical wisdom which is knowledge of the existing reality around us. While a snake does not have absolute reality, nonetheless relative reality confronts us day in and day out. What we see before us has a validity of its own, and this is why Sankaracharya declares in the Vivekachudamani (verse 521) that, "The moving world is a continuous series of perceptions of the Absolute."
Both forms of practical wisdom are conditioned. Correct practical wisdom is conditioned because what is apprehended has limited existence. Incorrect practical wisdom is due to an error in one's awareness and is conditioned by such error, like when we imagine a rope to be a snake.