Step 1: Recall the meaning of BOD.
BOD (Biochemical Oxygen Demand) is an index of the amount of biodegradable organic matter present in water.
It represents the oxygen required by microorganisms to decompose this organic matter.
\[
\boxed{\text{Higher biodegradable organic matter } \Rightarrow \text{Higher BOD}}
\]
Step 2: Choose the correct option.
Hence, BOD is estimated by measuring the amount of
\[
\boxed{\text{Biodegradable organic matter}.}
\]
Therefore,
\[
\boxed{(B)}
\]
is the correct answer.