What component in a four-wheeled vehicle transmits torque to all four wheels?

The transfer case is a crucial component in a four-wheeled vehicle, particularly those equipped with four-wheel drive (4WD) systems. Its primary function is to transmit torque from the vehicle's transmission to the front and rear axles, not just to one set of wheels. By distributing power to both the front and rear wheels, the transfer case enables better traction and stability across various driving conditions, such as off-road scenarios or slippery surfaces.

The transfer case typically incorporates mechanisms for engaging and disengaging 4WD, as well as providing different gear ratios to accommodate different driving scenarios. This versatility allows drivers to optimize their vehicle's performance based on the terrain they are navigating. The ability of the transfer case to manage torque distribution is essential for effective four-wheel drive operation, making it the correct answer in this context.