In 1967, Peetre proposed to give a precise description of the real interpolation space for Besov hierarchical spaces $l^{s,q}(A)$. In 1974, Cwikel proved that the Lions-Peetre formula for $(l^{q_0}(A_0), l^{q_1}(A_1))_{θ,r}$ have no reasonable generalization for any $r\neq q$. In this paper, we apply wavelets to transform the study of real interpolation space into {\bf the study of nonlinear functional structure and nonlinear topological structure}. We solve completely Peetre's longstanding open problem.