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A raster dataset is fundamentally a grid of pixels, where each pixel has a specific value that represents information about a particular location on the Earth's surface. This format is commonly used for various types of data, including satellite imagery, aerial photography, and digital elevation models. The values can reflect different attributes like elevation, temperature, land cover, or any other quantifiable information.

The structure of a raster dataset allows it to represent continuous data effectively, making it ideal for analyses that require working with phenomena that change gradually across space, such as rainfall or vegetation density. The raster grid format is advantageous because it enables efficient storage and manipulation of large amounts of geospatial data.

Additionally, given its pixel-based approach, raster datasets are integral in various GIS applications, especially in remote sensing, where the analysis of image data is crucial. The other options do not accurately depict the fundamental characteristics of raster datasets: they either describe different types of data formats or limit the use of rasters to a specific context or type.