How is 'iteration' utilized in programming?

Iteration in programming refers to the process of executing a certain set of instructions or statements repeatedly, usually with the aim of achieving a certain outcome or processing a collection of data. This is commonly implemented through loops, such as "for" loops or "while" loops, which allow a block of code to run multiple times until a specific condition is met.

By using iteration, programmers can efficiently manage repetitive tasks without having to write the same code multiple times, which simplifies code maintenance and improves readability. For instance, if you need to calculate the sum of all elements in an array, you can use iteration to traverse each element, adding it to a cumulative total rather than manually summing them up.

The other options provided — organizing data into hierarchical structures, storing values in variables, and encoding information in binary format — do not directly relate to the concept of iteration. Instead, they pertain to data organization, variable management, and data representation, respectively, which are different fundamental aspects of programming.