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A proxy server serves as an intermediary between a user's device and the internet. Its primary function is to enhance privacy and security by routing requests through itself. When a user sends a request to access a website, the request first goes to the proxy server, which then forwards it to the internet. This process helps mask the user's IP address, making it more difficult for websites and other entities to track their online activities. Additionally, proxy servers can provide benefits such as content filtering, caching to improve load times, and access control, which further bolster security.

The other options presented do not accurately describe the role of a proxy server. Creating backup files and database management involve data storage and retrieval processes rather than intermediary functions in internet traffic. A type of web browser does not encompass the functionality of a proxy; rather, it is a client application that renders and displays web content for users. Hence, option B properly encapsulates the essential characteristics and primary purpose of a proxy server in the context of networking and internet use.