Which testing method is used to measure an individual’s level of understanding or skill?

The correct answer is B. Criterion-referenced.

A criterion-referenced testing method measures an individual’s performance against a specific set of criteria or standards, indicating their level of understanding or skill in a particular area. This approach assesses whether a learner has mastered the material, rather than comparing them to other individuals. On the other hand, norm-referenced tests compare an individual’s score to the scores of a group, which doesn’t directly assess their understanding based on defined criteria.