The given expression involves the order of operations, which states that we must first calculate any operations inside parentheses. In this case, (5-3)^2 simplifies to 2^2, which equals 4. Next, we perform the multiplication, 3 x 4, which equals 12. Then, we perform the division, 8 ÷ 2, which equals 4. Finally, we subtract 12 and 4 from 10, resulting in 10 - 12 - 4 = -6. Therefore, the correct answer is 2.