To dynamically create a string in Python that incorporates variables directly into the string's content, the f-string syntax (f'') is used. This method allows for embedding expressions inside string literals efficiently. The correct format, f'{region}{store}sales{year}', seamlessly integrates the variables region, store, and year with the static string parts to generate the desired table name. This approach is straightforward and eliminates the need for concatenation operators (+), providing a clean and readable solution for string construction with variable content.