What does the 'pwd' command display in a Linux environment?

The 'pwd' command in a Linux environment stands for "print working directory." When executed, it displays the full path to the current working directory in which the user is located. This is particularly useful for users to confirm their present working location within the filesystem hierarchy, which is essential for navigating through directories and understanding where commands will be executed or where files will be accessed or created.

Other options, while related to filesystem operations, do not accurately describe the function of 'pwd.' For instance, listing all files in the current directory would involve using a command like 'ls,' while checking permissions of files and directories would typically use 'ls -l'. Additionally, counting the number of files in a directory can be accomplished with a command like 'ls | wc -l', not 'pwd'. Thus, 'pwd' specifically fulfills the role of displaying the current working directory's path, aligning perfectly with the provided answer.