Final answer:
In the Windows Firewall New Inbound Rule Wizard, the 'protocol' parameter specifies the type of traffic that can be blocked or allowed. It includes settings for TCP, UDP, and other transport layer protocols, in conjunction with specific port numbers.
Step-by-step explanation:
The parameter that specifies the exact type of traffic a firewall rule can block or allow in the Windows Firewall New Inbound Rule Wizard is known as the protocol. This parameter determines whether the rule applies to TCP, UDP, or any other transport layer protocol. Additionally, the rule can specify the ports associated with the traffic types, which is vital for managing network traffic and ensuring that only desired traffic can pass through the firewall.
For example, if you want to allow HTTP traffic, you would select TCP as the protocol and specify port 80 in the rule. If you wanted to allow inbound remote desktop connections, you would select TCP and use port 3389. Conversely, if you need to block a specific protocol's traffic, you would create a rule and select the appropriate protocol and port numbers to block.