1. What happens in the bitcoin network when two miners solve a block at the same time?
On such a condition, a race or a competition begins to validate which version of truth to be part of the block chain. The version of truth in longest chain and with the highest proof of work wins.
2. What is a stale block?
Stale blocks are blocks part of split chain, who were left behind, by other blocks with the best truth, who were successful to be part of the longest chain.
3. How do stale blocks occur?
Geographical distance and network delay, can affect a conflict in the network, that nodes do not get the broadcast of blocks in same time.
4. Why is it important to wait for more than one block to be confirmed when sending or receiving a transaction?
Because there is a chance that your transaction can be part of stale block.