What does the term 'arithmetic' refer to?

The term 'arithmetic' encompasses a branch of mathematics dealing with the basic operations of numbers, which includes addition, subtraction, multiplication, and division. The correct answer highlights that arithmetic is fundamentally about transforming numbers using specific rules and operations. This transformation can take many forms, such as calculating sums, differences, products, or quotients depending on the operation being performed.

In a broader context, arithmetic serves as the foundation for more complex mathematical concepts and is essential for everyday calculations, enabling individuals to solve problems and understand numerical relationships seamlessly. Thus, the notion of "transforming one number into another using given rules" effectively captures the essence of what arithmetic entails.

While options relating to dividing a number, calculating percentage increases, or memorizing numbers touch on aspects of arithmetic, they do not encompass its full scope, which is fundamentally about the principles and operations that underlie number manipulation.