Final answer:
The term that describes the assignment of students to educational activities based on performance levels is known as tracking, a practice that sorts students into different 'tracks' which can perpetuate educational inequalities.
Step-by-step explanation:
The process you're referring to, where students are assigned to specific education programs and classes based on test scores, previous grades, or perceived ability, is known as tracking. This is a formalized sorting system which results in student placement on different 'tracks', such as advanced or low achievers. This practice is considered to perpetuate inequalities within the education system, as it may limit students' opportunities based on their academic performance at an early age. According to functionalist theory, this method of sorting students is integral for identifying the most capable who are expected to excel in accelerated programs.