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What does DHCP do?

  1. Resolves IP to MAC address

  2. Converts FQDNs to IPs

  3. Hands out IP addresses to network devices

  4. Allows Microsoft systems to share resources

The correct answer is: Hands out IP addresses to network devices

DHCP stands for Dynamic Host Configuration Protocol and it is responsible for dynamically assigning IP addresses to network devices. Option A is incorrect because ARP (Address Resolution Protocol) resolves IP addresses to MAC addresses. Option B is incorrect because DNS (Domain Name System) converts FQDNs (Fully Qualified Domain Names) to IPs. Option D is incorrect because although DHCP is commonly used in Microsoft systems, it is not its main purpose and it is not exclusive to Microsoft systems. Therefore, option C is the most accurate answer as DHCP is specifically designed to hand out IP addresses and facilitate network connectivity.