The fallacy of the inverse occurs when one incorrectly assumes that if a conditional statement is true, then its inverse must also be true. Specifically, if we have a statement of the form 'If P, then Q' (P โ Q), the inverse would be 'If not P, then not Q' (ยฌP โ ยฌQ). This reasoning is flawed because the truth of the original statement does not guarantee the truth of its inverse.