We know that the volume $V$ of displaced fluid is also the volume of the object immersed. The quantity $m=\rho V$ is the mass of the displaced fluid, which therefore has a force on it given by $$F=mg=\rho Vg$$ since $$\rho=\frac{m}{V}\\
\rightarrow m=\rho V$$
So the first equation above is the force on the body of fluid that get's displaced by the object.
Consider when the actual object is immersed in the fluid:
Since it displaces a volume of fluid equal to the volume of the object, gravity tries to push the displaced fluid back to its original position. But since this is already occupied by the immersed object, this immersed object will therefore experience a force equal to the weight of the displaced fluid pressing on it.
Imagine that the object is not present in the fluid. The net upward force on this volume of fluid will be equal to its weight (since the fluid parcel is in equilibrium). But when the object is immersed in the fluid, this exact same force will be acting on the object pushing it upward.