What is the term for a device that forwards data packets to their destination based on IP addresses?

The term for a device that forwards data packets to their destination based on IP addresses is a router. Routers are critical in networking as they connect different networks together and determine the best path for data packets to travel across those networks. They do this by analyzing the destination IP address of each packet and using routing tables to make decisions about where to send the packet next, whether it's to another router or directly to the target device.

In contrast, a hub is a basic networking device that simply forwards data packets to all connected devices without any filtering or addressing based on IP. A switch operates at a lower level, primarily forwarding data based on MAC addresses rather than IP addresses, and is used within a single local area network (LAN). An access point is used to provide wireless connectivity to devices on a network and does not play a role in routing packets based on IP addresses. The unique function of the router in managing traffic between different networks and ensuring that data packets reach their intended IP destination makes it the correct choice in the context of the question.