Explanation:

Software refers to the set of instructions, data, or programs used to operate computers and execute specific tasks. It is the intangible component of a computer system, contrasting with hardware, which is the physical component. Software dictates how hardware performs its functions. Peripherals are external hardware devices. Information is processed data, not the instructions themselves. An icon is a visual representation on a screen. Hardware refers to the physical parts of a computer. Thus, 'software' correctly describes the programs and instructions that make a computer functional, enabling it to perform various operations and tasks as directed by the user.