What function does the Eraser tool perform in Photoshop?

The Eraser tool in Photoshop is designed to remove pixels from the selected layer, which uncovers any background or layers that are situated beneath it. When the Eraser tool is used, it essentially "erases" pixels on the active layer, similar to how an actual eraser would work on paper, exposing what's below. This is particularly useful for editing images, creating transparency, or fine-tuning elements on a layer.

The other options involve different functionalities within Photoshop. Blending colors is not the primary purpose of the Eraser tool; that's more aligned with tools like the Brush or Smudge tools. Creating a new layer for drawing refers to layer management in Photoshop, not the function of the Eraser. Applying filters is a completely separate process intended to modify the overall appearance of an image without directly removing content from layers. Thus, the action of removing pixels to reveal underlying layers distinctly identifies the function of the Eraser tool.