Total internal reflection & dispersion
The correct answer to the question "Rainbow is formed due to:" is Total internal reflection & dispersion. Let me explain the step-by-step process of how a rainbow is formed:
This entire process, combining total internal reflection and dispersion, results in the formation of a rainbow. Other options listed like "Reflection only" and "Diffraction and dispersion" are incorrect because they do not account for the entire process that forms a rainbow. Reflection alone cannot create the color spectrum, and diffraction, which is the bending of waves around obstacles, is not the mechanism at play in rainbow formation.