Correct Answer. C. To create and manage virtual machines The hypervisor's main function is to create and manage virtual machines by abstracting the hardware resources of the physical server and allocating them to each virtual machine as needed.
Option A is incorrect because managing network traffic between virtual machines is typically the role of virtual switches within or connected to the hypervisor, not the primary role of the hypervisor itself.
Option B is incorrect because facilitating communication between different storage devices is generally managed by the operating system or dedicated storage controllers, not the hypervisor.
Option D is incorrect because the hypervisor does not increase physical memory; it allocates existing physical resources among virtual machines.