Final answer:
Water is released from a moisture-saturated refrigerant when it is condensed. This process separates water from the refrigerant during the phase change from gas to liquid in refrigeration cycles.
Step-by-step explanation:
When a moisture-saturated refrigerant is condensed, water is released. Condensation occurs as the refrigerant gas condenses to a liquid, and it is during this phase change that water, which may have been carried in the vapor state, is separated due to the interaction with colder surfaces or components within the refrigeration system. This happens within the context of a refrigeration or air conditioning cycle where the working fluid, after releasing heat and condensing, is routed back through an expansion valve to the outdoor evaporator coils to absorb more heat and restart the cycle.