The correct answer is D. Transmit or absorb light of different colours.
An optical filter is a device that allows some wavelengths of light to pass through while absorbing or reflecting others. This can be used to change the color of light, to block out certain wavelengths of light, or to create a specific pattern of light.
Option A is incorrect because an optical filter does not reflect light of different colors. It either transmits or absorbs light of different colors.
Option B is incorrect because an optical filter does not dispense light into component colors. It either transmits or absorbs light of different colors.
Option C is incorrect because an optical filter does not refract light of different colors. It either transmits or absorbs light of different colors.