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Urbanization refers to the process by which an increasing percentage of a population comes to live in urban areas, such as cities and towns. This phenomenon typically occurs as people move from rural areas, where agricultural lifestyles predominated, to cities in search of job opportunities, better economic prospects, and improved living conditions. As cities grow and expand, the proportion of people living in these urban environments rises, which is the essence of urbanization.

This concept encompasses various factors including industrialization, economic transformation, and changes in societal structures, all contributing to the shift of populations toward urban locales. As such, the correct answer is focused on the rising percentage of individuals residing in urban settings, illustrating the essence of urbanization as a pivotal aspect of demographic and societal change.