What Excel feature allows users to filter data dynamically in a report?

The choice of Pivot Tables as the correct answer highlights their powerful ability to summarize, analyze, and dynamically filter data in an organized manner. Pivot Tables allow users to create interactive reports that can be manipulated by dragging and dropping fields to rearrange how data is viewed, providing insights from different perspectives.

When using a Pivot Table, users can apply filters to any of its rows or columns, which enables them to focus on specific subsets of data without altering the source data itself. This dynamic filtering capability allows for a more streamlined analysis process, as the underlying data remains intact while users can easily manipulate the view to highlight trends, categories, or specific data points of interest.

The other options, while useful in their own right, do not provide the same level of dynamic data manipulation as Pivot Tables do. Conditional Formatting visually emphasizes specific data points based on rules, Data Validation restricts the type of data that can be entered into a cell, and VLOOKUP is a function used for looking up values in a table based on a specific criterion, but none facilitate dynamic filtering of data in a report format as effectively as Pivot Tables.