The given differential equation is:
\[ \left( 1 - \left( \frac{dy}{dx} \right)^2 \right)^{3/2} = k \frac{d^2y}{dx^2}. \]
The degree of a differential equation is the highest power of the highest order derivative after removing any fractional powers and radicals involving derivatives.
Raise both sides to the power of \(\frac{2}{3}\) to eliminate the fractional exponent:
\[ 1 - \left( \frac{dy}{dx} \right)^2 = \left( k \frac{d^2y}{dx^2} \right)^{2/3}. \]
To make the equation polynomial in derivatives, raise both sides to the power of 3:
\[ \left( 1 - \left( \frac{dy}{dx} \right)^2 \right)^3 = \left( k \frac{d^2y}{dx^2} \right)^2. \]
In this form, the highest order derivative is \(\frac{d^2y}{dx^2}\), and its highest power is 2.
Thus, the degree of the differential equation is: 2