Which image file format supports transparency and animation?

The choice of GIF as the correct answer is based on its unique characteristics that cater to both transparency and animation. The GIF format allows for one of the colors in the palette to be defined as transparent, enabling backgrounds or other images to show through. This feature is particularly useful in web graphics where images may need to blend seamlessly with various backgrounds.

In addition to transparency, GIF supports simple animations. This is accomplished by layering multiple frames into a single file, allowing for a sequence of images to be displayed in quick succession, creating the effect of motion. As a result, GIFs are frequently used for brief animated graphics on websites and social media platforms.

Other formats, like PNG, while supporting transparency, do not support animation, making them less suitable for certain uses where both features are required. JPEG is a lossy format that does not support either transparency or animation, focusing primarily on high-quality still images. BMP, primarily a bitmap format, lacks both animation capabilities and efficient compression, making it unsuitable for web use. Thus, GIF stands out as the only format among these options that effectively supports both features.