How can you create a drop-down list in Excel?

Creating a drop-down list in Excel is effectively done using the Data Validation feature. This feature allows you to control the type of data entered into a cell, and one of its functionalities is to create a list from which users can select their input.

When you use the Data Validation option and choose "List" from the settings, you can specify the source of the drop-down list, whether it is a range of cells in the same worksheet or a list you enter directly. This creates an interactive element that enhances data entry efficiency and accuracy, reducing the likelihood of errors and ensuring data consistency.

Utilizing the Conditional Formatting feature does not provide the same functionality, as it is intended for changing the appearance of cells based on specific conditions rather than facilitating data entry. Entering data in multiple cells and copying data from another sheet do not create a structured selection mechanism like a drop-down list.

Thus, Data Validation stands out as the appropriate tool for this task, making it the correct choice for creating a drop-down list in Excel.