The correct option is (D) Dispersion
The formation of a rainbow primarily involves the phenomenon of dispersion. Dispersion is the splitting of light into its component colors (wavelengths) as it passes through a medium, such as water droplets in the atmosphere. When sunlight enters a raindrop, it undergoes both refraction and dispersion. The different wavelengths of light are refracted by different amounts, resulting in the separation of colors and the formation of a rainbow.