I can see how this is confusing. Normally, with a flag you 
Agree or 
Disagree. In that case you’re agreeing or disagreeing with the flag. Here we have a queued post. Approve and reject refers to the post, not the “flag”. This is extra confusing because we’re using the flag icon next to the words “Needs Approval”. With the recent change in Confused by "Approve" and "Reject" in the review queue, perhaps we can add the word “post” to the approve and reject buttons?
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