Which of the following correctly identifies a byte's purpose?

A byte is fundamentally a unit of digital information that typically consists of 8 bits. Its primary purpose is to represent a character of information in computing. This includes characters from text, such as letters, numbers, and symbols, following encoding standards like ASCII or Unicode, which map specific byte combinations to respective characters.

While a byte can indirectly relate to colors (as in the representation of color values in graphics), it is not specifically designed just for that function. Additionally, managing application settings and executing functions are tasks that involve higher-level abstractions in programming and software design, which utilize bytes in various ways, but these tasks do not accurately describe the fundamental role of a byte itself. Thus, the correct identification of a byte's purpose is indeed to represent a character of information.