The volatility smile is a long-observed pattern in which at-the-money options tend to have lower implied volatilities than other options. The pattern displays different characteristics for different markets and results from the probability of extreme moves

The volatility of sugar is 600.00

Black-Scholes assumes the returns on prices follows a Normal (Gaussian) distribution. As the markets figured out this isn't the case, traders started demanding more money for options that were further out-of-the-money. This is called the "volatility smile".

Volatility is the measure of how easily something evaporates.

Option Vega is the change in the value of an option for a 1-percentage point increase in implied volatility, i.e. the first derivative of the option price with respect to volatility.