Yes you are correct. The line of best fit, aka the regression line, represents the line that is closest to all of the points on the scatterplot. Ideally you want the line to go through all of the points; however, it's not possible in this case. The next best thing is to get as close as possible. You can think of it like a supermarket that is right in the middle of a city so that it's closest to all its residents.
