Final answer:
The fibular collateral ligament, also known as the lateral collateral ligament, provides lateral stability to the knee by resisting hyperextension or rotation of the extended knee joint.
Step-by-step explanation:
The structure that provides lateral stability to the knee, also referred to as the lateral collateral ligament, is the fibular collateral ligament. This extrinsic ligament of the knee joint spans from the lateral epicondyle of the femur to the head of the fibula. It is crucial in stabilizing the knee by resisting hyperextension or rotation of the extended knee joint. In conjunction with other ligaments like the cruciate ligaments and the menisci, it contributes to the overall function and integrity of the knee joint.