Final answer:
Packet loss impacts traffic/application performance in TCP handshakes due to delays and retransmissions caused by lost packets.
Step-by-step explanation:
Packet loss can impact traffic and application performance in TCP handshakes because TCP relies on acknowledgements to ensure data integrity and reliability.
When a packet is lost in transit, the receiver doesn't acknowledge its receipt, causing the sender to timeout and retransmit the packet. This introduces delays and inefficiencies in the communication process.
For example, if a file transfer is occurring and packets are consistently being lost, it would take longer for the file to be completely transmitted because the sender constantly has to retransmit the lost packets. The overall performance of the transfer would be impacted as a result.