What can be said about the versatility of lossy compression?

Lossy compression is particularly well-suited for audio and visual media, making it a popular choice in these fields. This method reduces file size by permanently eliminating some data, which is often less noticeable to the human ear or eye. For instance, in audio files such as MP3s or in video formats like MPEG, the algorithms are designed to reduce fidelity in ways that minimally compromise quality while significantly decreasing the file size. This is advantageous for streaming, storage, and faster downloads, where file size matters.

Unlike lossless compression, which retains all original data and is therefore larger, lossy compression sacrifices some data, leading to smaller file sizes that are more manageable for multimedia applications. This is why lossy compression is prevalent for web images (like JPEG) and audio formats where storage space and bandwidth considerations are critical for users.

The other choices either suggest incorrect applications of lossy compression or mischaracterize its nature, which distinguishes this choice as the most accurate representation of the method's versatility.