Final answer:
Scabies is a contagious skin disease caused by the itch mite, and is the correct answer to the given question, distinguishing it from other skin conditions like ringworm, chickenpox, and psoriasis.
Step-by-step explanation:
The contagious skin disease caused by the itch mite, which burrows under the skin, is known as scabies. Scabies is characterized by intense itching and the presence of tracks or burrows on the skin where the mites have dug in to lay their eggs. Other skin infections like tinea corporis (ringworm) are caused by dermatophytes and not by mites. Infections such as chickenpox, caused by the varicella-zoster virus, include skin rashes but are primarily respiratory infections that are systemic, not caused by parasites like the itch mite. Psoriasis, on the other hand, is a chronic autoimmune condition that affects the skin, not an infection. Thus, the correct answer is (2) Scabies.