Final answer:
The governor is the component that sets air compressor cut-in and cut-out pressures by regulating the air pressure in the system.
Step-by-step explanation:
The component that sets air compressor cut-in and cut-out pressures is the governor. The governor is a device that regulates the air pressure in the system and controls the operation of the air compressor. It monitors the pressure in the system and activates the compressor to start when the pressure drops below the cut-in pressure. Once the pressure reaches the cut-out pressure, the governor shuts off the compressor.