Which device connects multiple computers within a LAN and forwards data to the correct device?

The correct response is that a switch connects multiple computers within a Local Area Network (LAN) and efficiently forwards data to the correct device. Switches operate at the data link layer of the OSI model and intelligently manage data traffic by utilizing MAC addresses. When a switch receives a data packet, it checks the destination address and sends the packet specifically to the intended device rather than broadcasting it to all connected devices. This enhances network efficiency and performance, as it reduces unnecessary traffic and minimizes collisions.

In contrast, a hub simply broadcasts data packets to all connected devices without any intelligence, which can lead to data collisions and network inefficiency. A router, while it connects different networks and directs data based on IP addresses, does not primarily function within a single LAN. A modem, on the other hand, serves to connect a LAN to the Internet or other external networks, converting digital data from a computer into a format suitable for transmission over a communication medium. Therefore, the role of a switch is specific to managing data flow within a LAN, making it the most appropriate choice for this question.