Purpose of Smoothing Reactor
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A smoothing reactor is inserted in series with the DC line to reduce current ripple, limit the rate and magnitude of fault current, and help prevent current discontinuity/commutation disturbances. The collection of functions given in option D is therefore correct.

Smoothing reactor means smoother DC current plus fault-current restraint.
It does not serve as the main AC harmonic filter; those filters are connected separately.
Smoothing reactor means smoother DC current plus fault-current restraint.