System software is a type of software that manages and controls the operation of computer hardware and provides a platform for running application software. It includes the operating system and utility programs, which are essential for the proper functioning of a computer system. The correct answer to the given question is option 'E' - System software.

Operating System:
The operating system (OS) is a crucial component of system software. It acts as an intermediary between the hardware and the application software. The primary functions of an operating system include managing computer resources, controlling peripheral devices, providing a user interface, and facilitating communication between software and hardware components. Examples of operating systems include Microsoft Windows, macOS, Linux, and Unix.

Utility Programs:
Utility programs are a set of software tools that assist in managing, maintaining, and optimizing the computer system. These programs perform specific tasks to enhance system performance, security, and functionality. Utility programs can be categorized into various types such as:

1. Disk management utilities: These programs help in managing disk partitions, formatting disks, and optimizing disk space usage. Examples include Disk Cleanup, Disk Defragmenter, and Disk Utility.

2. File management utilities: These tools assist in organizing, searching, and manipulating files and folders. They provide features like file compression, encryption, and backup. Examples include File Explorer, Finder, and WinZip.

3. System maintenance utilities: These programs help in monitoring system performance, troubleshooting issues, and performing maintenance tasks. They can scan for malware, update software, and clean up temporary files. Examples include antivirus software, system optimizers, and registry cleaners.

4. Network utilities: These tools aid in managing and troubleshooting network connections. They can diagnose network issues, monitor network traffic, and configure network settings. Examples include Ping, Traceroute, and Network Analyzer.

5. Security utilities: These programs focus on protecting the computer system from external threats. They include antivirus software, firewalls, and encryption tools. Examples include Windows Defender, Norton Antivirus, and TrueCrypt.

By categorizing the operating system and utility programs as system software, it emphasizes their role in providing a foundation for other software to run efficiently on a computer system.