Final answer:
The standard deviation of the residuals, s, indicates that the average distance of the activity level ratings from the least-squares regression line is about 4.785 units, reflecting how well the regression line fits the observed data.
Step-by-step explanation:
The correct interpretation of the standard deviation of the residuals, s, in this setting is B. The average distance of the activity level ratings from the least-squares line is about 4.785 units. This means that, on average, the observed fish activity levels deviate from those predicted by the least-squares regression line by 4.785 units. It provides a measure of how well the regression line fits the data. If s is smaller, the fit is better; if larger, the fit is not as good. Options A, C, D, and E all describe different concepts that are not related to s, the standard deviation of the residuals.