Step 1: Understand the terminology related to canals.
In canal design: Free Board: The vertical distance between the full supply level (FSL) and the top of the bank.
Berm: A horizontal strip along the top of the bank, used for maintenance or stability.
Height of Bank: Total vertical height from the bed to the top of the bank.
Bed Width: Width of the canal at the bottom.
Step 2: Match definition with question.
The question specifically asks about the vertical distance between the top of the bank and FSL, which matches the definition of: $$ \boxed{\text{Free Board}} $$
Step 3: Eliminate incorrect options.
Berm: Horizontal feature, not vertical.
Height of Bank: Refers to total height, not just the safety margin.
Bed Width: Horizontal measurement at the base.