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From p. 154 of Fate Core

In a conflict, characters are actively trying to harm one another. It could be a fist fight, a shootout, or a sword duel. It could also be a tough interrogation, a psychic assault, or a shouting match with a loved one. As long as the characters involved have both the intent and the ability to harm one another, then you’re in a conflict scene.

Conflicts are either physical or mental in nature, based on the kind of harm you’re at risk of suffering in it. In physical conflict, you suffer bruises, scrapes, cuts, and other injuries. In mental conflicts, you suffer loss of confidence and self-esteem, loss of composure, and other psychological trauma.


The Elder Scrolls: Fate of Tamriel Jozh