Final answer:
The Q1 of 501 indicates that 25% of the students scored below 501 on the Verbal SAT, not the average or highest score, nor does it imply that 75% scored above it.
Step-by-step explanation:
When the average state Verbal SAT score has a Q1 of 501, it means that 25% of the students scored below 501 on the Verbal SAT. Quartiles divide a rank-ordered data set into four equal parts, and the first quartile (Q1) corresponds to the 25th percentile, indicating that a quarter of the scores are below this value. In contrast, option B incorrectly suggests that 75% of students scored above Q1, which would be true for Q3, the third quartile. Option C is incorrect because Q1 has no relation to the highest score attained. Lastly, option D is incorrect, as Q1 is not an average but a specific point in the distribution of scores where the percentage of data below it is known.