Final answer:
The enzyme that catalyzes the excision and insertion of transposons is called transposase. Transposons have the ability to move within a DNA molecule or from one cell to another, allowing for genetic diversity.
Step-by-step explanation:
The enzyme that catalyzes the excision of a transposon from a donor DNA site and its subsequent insertion at a target site is called transposase, which is encoded by the transposon itself.
Transposons are segments of DNA that have the ability to move from one location to another because they code for the enzyme transposase. Transposase facilitates recombination between inverted repeats, allowing the transposon to be cut from its original location and inserted into a new location.
This process of transposition, mediated by transposase, allows transposons to move within a DNA molecule, from one DNA molecule to another, or even from one cell to another, thereby introducing genetic diversity.