Which of the following best describes formative assessment?

The best description of formative assessment is the observation of student understanding during lessons. Formative assessment is a continuous process that takes place during the learning experience, allowing instructors to gauge students' grasp of the material as they progress. This real-time feedback helps educators identify areas where students may need additional support or instruction, facilitating adjustments to teaching methods and learning plans to enhance student comprehension and engagement.

In contrast, the other options represent assessment methods that are not formative in nature. Standardized tests conducted at the end of a term and grade-based evaluations at the end of units serve as summative assessments. These evaluations focus on measuring students’ knowledge after instruction has been completed, not during it. Annual performance reviews for teachers likewise do not focus on student learning but rather on evaluating the teacher's effectiveness over a longer period, which falls outside the scope of formative assessment. This distinction emphasizes the role of ongoing feedback in formative assessment as a crucial element of the educational process.