Standard deviation is calculated as:

Standard deviation is a statistical measure that quantifies the amount of variation or dispersion in a set of data values. It reflects how much individual data points differ from the mean of the dataset.

The correct calculation of standard deviation involves first finding the mean (average) of the data points, then determining the differences between each data point and the mean, squaring those differences to eliminate negative values, and finally averaging those squared differences. This average is calculated by dividing the sum of these squared differences by the number of data points if one is calculating the population standard deviation. For the sample standard deviation, this sum is divided by the number of data points minus one. The square root of this average gives the standard deviation.

Option B accurately captures this process. By stating it involves the "sum of the squared differences from the mean divided by the number of data points," it highlights the key steps in deriving the standard deviation, making it the correct choice.