Final answer:
The Microsoft Windows Server Backup utility allows for both file-level and system-level backups, including the operating system and applications.
Step-by-step explanation:
The correct answer to the question "Which of the following is true regarding the Microsoft Windows Server Backup utility?" is "It allows backing up and restoring the operating system." This utility is an integrated component of Windows Server operating systems and is designed to facilitate both file-level and system-level backup operations.
It enables the backup of entire volumes, selected files, and system state data, including the operating system itself and installed applications. It also allows users to perform a bare-metal recovery, which restores a system to a new hard drive in case of disk failure.