Introduction:
When Mrs. Kapoor wants to gift a digital album to her friend on her birthday, it is important to choose the right format for the images. The format should be able to preserve the quality of the images, especially considering that they have lots of color shading. Among the given options, the best-suited format for this purpose is JPEG.

Explanation:
JPEG stands for Joint Photographic Experts Group, and it is a commonly used format for storing and transmitting digital images. Let's understand why JPEG is the best choice for Mrs. Kapoor's digital album:

1. Compression: JPEG uses lossy compression, which means it reduces the file size by removing some details that are not easily visible to the human eye. This compression technique helps to reduce the file size of images without significant loss in quality. It is particularly effective for images with lots of color shading, as it can retain the overall appearance while reducing the size.

2. Color Support: JPEG supports millions of colors, making it suitable for images with rich color shading. It can accurately represent the various shades and tones present in the images, ensuring that the visual impact is preserved.

3. Compatibility: JPEG is widely supported by different devices, operating systems, and software applications. This means that Mrs. Kapoor's friend will be able to view the digital album easily on various devices, including computers, smartphones, and tablets.

4. File Size: The compressed JPEG files have relatively smaller file sizes compared to other formats like Bitmap. This is advantageous for Mrs. Kapoor as it allows her to store and share more images within a limited storage space. Additionally, smaller file sizes also facilitate faster uploading and downloading of the images.

Conclusion:
Considering the requirements of Mrs. Kapoor's digital album, the JPEG format emerges as the best choice. Its lossy compression, support for rich colors, compatibility, and smaller file sizes make it ideal for storing and sharing images with lots of color shading. Mrs. Kapoor can confidently use JPEG format to create a visually appealing digital album for her friend's birthday gift.