Which of the following statements about lossless compression is true?

• A. It degrades quality to achieve higher compression.
• B. It reduces file size but permanently degrades quality.
• C. It reduces file size without losing any quality.
• D. It increases file size to improve compatibility.

Answer: (C)

Lossless compression works by encoding data so that nothing is discarded, allowing the original file to be reconstructed exactly when decompressed. Because no information is lost, the quality remains identical to the original, even though the file size is reduced. This is why lossless methods are chosen for data where exact reproduction matters, such as text, software, or PNG images.

In contrast, the idea of degrading quality to gain a smaller size describes lossy compression, where some information is permanently discarded to achieve greater reductions. The notion of increasing size to improve compatibility isn’t how lossless compression operates.