Answer : Absorbs and releases thermal energy by first vaporizing then condensing.
Explanation :
The transfer of heat from one place to another is a function of refrigerant.
Initially, the liquid refrigerant enters the indoor coil. Here, it changes from liquid state to vapor state. Then this vapor refrigerant enters into the compressor.
Finally, it flows into the condenser. Here, It releases heat to the outside air.
So, refrigerant absorbs and releases thermal energy by first vaporizing then condensing.