What is meant by the term "data processing"?

The term "data processing" refers to any operation that is performed on personal data. This encompasses a wide range of activities, including the collection, organization, storage, analysis, and dissemination of data. In essence, data processing involves transforming raw data into a meaningful format, which can then be used for various purposes such as decision-making, reporting, or other forms of analysis.

The significance of understanding data processing lies in recognizing its comprehensive nature. It is not limited to merely storing data or collecting it; instead, it acknowledges that data undergoes a series of transformations and manipulations. This can be in the form of sorting, filtering, and statistical analysis, among other tasks.

Since the correct answer highlights this broad definition, it encapsulates the entire spectrum of what can be done with personal data, thus illustrating the concept of data processing more accurately than the other choices.