The word ranula comes from the Latin for frog because the bluish translucent swelling under the tongue looks like a frog underbelly. Anatomically it belongs to the floor of the mouth and is linked to the sublingual or submandibular salivary apparatus, forming when saliva collects in a cyst.
Testing the statements one by one clears the picture. Calling it an epulis is wrong, since epulis refers to a localised growth on the gums. Tying it to the thyroglossal cyst is also wrong, because that lesion is a midline neck remnant along the tongue to thyroid descent, nowhere near the floor of mouth. While it is true a ranula is fundamentally a mucus retention or extravasation cyst, the cleanest and most direct defining statement asked here is its location.
So the statement that captures the essence of a ranula is that it is a cystic swelling in the floor of the mouth.
\[\boxed{\text{It is a cystic swelling in the floor of the mouth}}\]