Which component is utilized by the DSMAC for terminal guidance?

The correct choice is the digital camera. In the context of the DSMAC (Digital Scene Matching Area Correlator), this system relies on imagery captured by a digital camera to guide munitions during their terminal phase. The DSMAC works by comparing the real-time images received from the camera with pre-stored reference images of the target area. This correlation allows it to determine the precise location and trajectory needed to hit the target accurately.

The use of a digital camera is pivotal because it provides high-resolution imagery that helps in analyzing and ensuring the weapon is on the correct path as it approaches the target. The accuracy of this system is further enhanced by the capability of digital cameras to operate in various environments and lighting conditions, thereby improving targeting effectiveness.