How many decimal values can eight bits of data represent?

Eight bits of data can represent a total of 256 different values because each bit can be in one of two states: 0 or 1. Thus, for eight bits, you calculate the total number of possible combinations by raising 2 (the number of states) to the power of 8 (the number of bits).

This is expressed mathematically as 2^8, which equals 256. Each unique combination corresponds to a different value, number, or character when using binary coding systems. Therefore, the correct answer reflects the total possibilities that can be constructed with eight bits.

The other options indicate higher numbers that exceed the actual range of values represented by eight bits, which is strictly limited to 256 different values.