The median of a distribution is the middle value when the data is arranged in ascending or descending order. It is a measure of central tendency that helps us understand the central value of a dataset. When we say that the median divides the distribution into two equal parts, it means that half of the data points are smaller than the median and half are larger than the median.

To understand why the correct answer is option 'C' (the median divides the distribution into two equal parts), let's consider an example. Suppose we have a dataset of 7 numbers: 1, 3, 5, 7, 9, 11, 13. If we arrange these numbers in ascending order, we get: 1, 3, 5, 7, 9, 11, 13.

In this case, the median is the middle value, which is 7. Now, let's see how the distribution is divided by the median:

- Numbers smaller than the median: 1, 3, 5
- Median: 7
- Numbers larger than the median: 9, 11, 13

As we can see, there are three numbers smaller than the median and three numbers larger than the median. Therefore, the median divides the distribution into two equal parts.

In general, if the dataset has an odd number of values, the median will be the middle value, and it will divide the distribution into two equal parts. However, if the dataset has an even number of values, the median will be the average of the two middle values, and it will still divide the distribution into two equal parts.

Therefore, the correct answer is option 'C' (the median divides the distribution into two equal parts).