Final answer:
The largest physical size capacitors are typically used for filtering AC in a power supply. Their larger size indicates a higher power and energy handling capability, which helps to smooth out voltage fluctuations.
Step-by-step explanation:
Capacitors with the largest physical size are typically used for filtering AC in a power supply. The size of a capacitor is often associated with its ability to handle higher power and energy levels which is necessary for filtering AC in power supplies. Large capacitors can hold more charge and can therefore smooth out fluctuations in voltage by providing or absorbing charge as needed, acting like a reservoir. This filtering capability is crucial in power supplies to maintain a steady direct current (DC) output despite variations in the alternating current (AC) input.