If it means “knowledge”, I.e., to know the difference between “right” and “wrong” then is it different from the knowledge bestowed to mankind upon his creation?
In this verse it means Torah which was Firqan. Furqan means the one which differentiate. It is used in the meaning of differentiation between right from wrong. Quran is also called Furqan to tell what is right in the religion from the wrongs that have been incorporated in the religion or faiths.
Human has a capacity to differentiate between right and wrong and that is called Hikman and Hukm in the Quran that means wisdom and power to decide what is right, respectively.
The innate knowledge with which human beings are born with is generic in nature (for instance, the basic premise of morality and the knowledge of the reality of being a creation etc.) and there is no yardstick available for decisiveness of such knowledge when it comes to the application. All divine books (Quran, Torah, etc.) not only provide specifics to that generic knowldge, but they also provide a yardstick on religious conflicts.
Just as the Almighty has sent prophets to guide mankind, similarly He has revealed His Books to these prophets for this purpose. The purpose of these Books is that people have with them the written guidance of God in His very words so that they can judge between what is right and what is wrong through these Books and are able to resolve their differences through them and in this manner they are able to adhere to the truth regarding their religion.
The Quran was revealed to Muhammad (sws), the last prophet of God. It is regarded as the mizan (scale that tells good from evil) and the furqan (distinguisher between good and evil) by the Almighty in the Quran itself (42:17; 25:1) and a muhaymin on the previous scriptures. The word muhaymin is an adjective formed from the words هَيْمَنَ فُلاَنٌ عَلَى كَذَا which means “a guardian” and “a protector”. It means that the Quran is the real authentic and trustworthy version of the Book of God. Thus, in matters of religion, everything accepted or rejected shall be decided under the guidance of the light provided by it.
For a detailed discussion on the meaning of Furqan, please also refer to the video below from 27:45 to 42:32
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