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A switch primarily functions in a network by connecting multiple cable segments and effectively forwarding frames to the appropriate segment. This means it operates at the data link layer (Layer 2) of the OSI model, where it examines incoming Ethernet frames and forwards them only to the specific port that leads to the destination device. This targeted forwarding is enabled by the switch maintaining a MAC address table, which allows it to remember the hardware addresses of devices connected to each of its ports. This functionality enhances network efficiency and reduces unnecessary traffic on the network.

The other options describe functions that are not primarily associated with switches. For example, generating new IP addresses is a function of a DHCP server. Filtering traffic is a broader function typically associated with routers or firewalls, which manage traffic between different networks or subnets. Converting data packets into Ethernet frames refers to the process that occurs at different layers of networking and is specific to protocols rather than the primary function of a switch.