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Yoga Sutras 1.8

Patanjali, explained by Swami Vivekananda

विपर्ययो मिथ्याज्ञानमतद्रूपप्रतिष्ठम् ॥

viparyayo mithyājñānamatadrūpapratiṣṭham

Indiscrimination is false knowledge not established in real nature.

In plain words: Mistaken knowledge is believing something that does not match what is really there, like mistaking a shiny shell for silver.

Yoga Sutras 1.8
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Swami Vivekananda explains

The next class of Vrittis that arises is mistaking one thing for another, as a piece of mother-of-pearl is taken for a piece of silver.