Final answer:
The filter-water separator is the component that shuts down the fueling pumps in the presence of water and sediment.
Step-by-step explanation:
In a Type IV hydrant system, the component that shuts down the fueling pumps when water and sediment are detected in the fuel is called a filter-water separator. This device is typically installed within the system and is responsible for removing any water and solid contaminants present in the fuel.
When the filter-water separator detects the presence of water and sediment, it triggers a shut-off mechanism that stops the fueling pumps. This helps prevent the contamination of aircraft fuel with impurities that could potentially damage the engines or other fuel system components.