Which statement is true about the use of labels in SAS datasets?

Labels in SAS datasets serve an important purpose in enhancing the readability of the data by providing descriptive names for variables. When creating datasets, using labels allows users to better understand the meaning of each variable at a glance, especially when the original variable names are cryptic or abbreviated. This descriptive naming is particularly useful when generating reports or visualizations, as it provides clarity and context to the data presented.

For example, if a variable is named var1, applying a label like "Age of Respondent" can significantly improve the understanding of the dataset when viewed or analyzed. This use of labels helps in conveying more information and ensuring that users can draw insights more effectively from the data.

The concept that labels must be unique across datasets is not accurate; labels can be reused across different datasets without any issues. Additionally, labels are not limited to numeric variables; they can be applied to both numeric and character variables. Lastly, while SAS does allow for automation of variable names, it does not automatically derive labels from variable names unless specified by the user. Labels are a distinct feature that enhances data interpretation, making option C the enabler of better communication of variable content.