Final answer:
Network sniffers (packet analyzers) capture all traffic through the NIC they're attached to, but they can't see traffic on other network segments or through different interfaces unless specifically configured.
Step-by-step explanation:
The statement "Sniffers look only at the traffic passing through the network interface adapter on the machine where the application is resident" is True. Network sniffers or packet analyzers are applications that capture all the traffic passing through the network interface card (NIC) to which they are attached. It's important to note that these tools can capture traffic that is both inbound and outbound on the network interface. However, they are limited to the traffic that can be seen by that particular network interface. If the traffic is on a different segment of the network or passes through a different interface, the sniffer will not capture that traffic unless it is specifically configured to do so.