Well what have you done?  They are simply asking you for an example of how you have handled this situation.  Unless your answer is one of the following;

1. I never do anything but follow directions;
2. I jumped up and down on my managers desk screaming like a mad banshee until I was removed from the building in handcuffs;
3. I fermented a rebellion of all my managers direct reports and then hung him from the 10th story window until he agreed to tender his resignation and recommend that I be promoted into his position.

You should give them an example of how you handled the conflict.