Step 1: Recall the formula for shear modulus.
Shear modulus ($G$) is related to shear wave velocity ($V_s$) and density ($\rho$) by the equation: \[G = \rho V_s^2\]
Step 2: Derivation.
Starting with the formula for wave velocity, $V_s = \sqrt{\dfrac{G}{\rho}}$.
Squaring both sides and rearranging yields $G = \rho V_s^2$.
Step 3: Result.
The correct formula is $\rho V_s^2$.