File formatting refers to the way data is organized and stored in a file. Different formats, such as PDF, JPEG, or CSV, dictate how information is encoded, making it readable by specific software or applications. Each format has its own set of rules and structures, which can affect how the data is displayed or processed. Choosing the right file format is important for compatibility and functionality. For example, Word documents are best for text editing, while MP3 files are used for audio. Understanding file formatting helps users select the appropriate format for their needs, ensuring efficient data management and sharing.