C-172 instructor reported a student pilot on a solo flight had an NMAC event while on the landing pattern training. The student mistakenly identified the wrong aircraft to follow for landing resulting in a loss of separation and causing other aircraft to execute a go-around.

Narrative

My student was on solo flight inside traffic pattern for ZZZ RWY XXR. Right traffic abeam the numbers on downwind. He was asked to report traffic on final in sight by Tower; but unfortunately got confused and said traffic is in sight by having contact with the traffic which was inside base- final turn number one. Added workload; confusion and lack of extensive experience; he turned inside the traffic on short final which put his aircraft in close proximity and hence the other traffic had to discontinue approach and go around. Realizing the mistake and with further instruction from ATC avoided any further incidents. Moreover; [he] received landing clearance shortly after and landed safely. The incident was reviewed with him / ATC and his authorized instructor. Takeaway from the incident includes learning more about being aware of the traffic ahead; behind and in proximity of our aircraft in high work load environments like traffic patterns and approach phases of flight. I; the instructor; will make sure that he receives extensive training on the things he was found deficient.