What diagram uses overlapping circles to illustrate relationships between sets?

The correct answer is the Venn Diagram, which effectively uses overlapping circles to demonstrate the relationships and intersections between different sets. Each circle represents a set, and the areas where they overlap indicate common elements between those sets. This visual representation is particularly useful in fields such as mathematics, logic, statistics, and probability, as it helps to intuitively convey how groups of items are related to one another.

In contrast, the binary, decimal, and hexadecimal systems refer to numeral systems used for expressing numbers. The binary system uses base 2, the decimal system uses base 10, and the hexadecimal system uses base 16. None of these systems utilize visual diagrams or overlapping shapes to convey set relationships, which is the defining characteristic of a Venn Diagram. Understanding this distinction reinforces the unique purpose of each diagram and numeral system in analytical and computational tasks.