This is the 246th most frequent Chinese word.
水平
Level; standard; proficiency.
In this sentence, '水平' (shuǐpíng) refers to someone's level or proficiency in music.
他的音乐水平很高。
His musical level is very high.
Here, '水平' is utilized to ask about the assessment of someone's capability in a particular skill, in this case, Chinese.
你觉得我的中文水平怎么样？
How do you think my Chinese level is?
In this usage, '水平' denotes the standard or quality shown in an event or activity.