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SUID stands for "Set User ID." This permission setting on executable files allows users to run the program with the file owner's privileges rather than their own. When a user executes a file with the SUID bit set, the process runs with the effective user ID of the owner of the file, which is often root. This capability is useful for tasks that require elevated privileges while providing a means for regular users to perform specific functions without giving them broader permissions across the system.

Understanding the SUID functionality is essential in system administration, as it directly pertains to security and user permissions within Unix/Linux environments. The other options do not represent recognized terms or concepts related to file permissions in Unix/Linux systems, making them less relevant in the context of system security and user privilege management.

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