Sequential Circuit Explanation:
Sequential circuits are a type of digital circuit that uses a clock signal to operate. These circuits utilize memory elements called flip-flops to store information, and gates to perform logical operations. Here's an explanation of why a sequential circuit is the correct answer:

Interconnection of Flip-Flops and Gates:
- Flip-flops are used in sequential circuits to store binary information. They have two stable states (0 or 1) which can represent the current state of the circuit.
- Gates are used to perform logical operations in the circuit, such as AND, OR, and NOT functions. They help in controlling the flow of data within the circuit.

Functionality of a Sequential Circuit:
- In a sequential circuit, the output not only depends on the current inputs but also on the previous states of the flip-flops.
- These circuits have feedback loops that allow them to remember past states, making them suitable for applications that require memory and sequential logic.

Types of Sequential Circuits:
- There are two main types of sequential circuits: Synchronous and Asynchronous.
- Synchronous circuits use a clock signal to synchronize the operation of flip-flops, while asynchronous circuits do not rely on a clock and operate based on signal transitions.

Conclusion:
- In conclusion, a sequential circuit is an interconnection of flip-flops and gates that rely on memory elements to store information and perform logical operations. This type of circuit is essential in digital systems where sequential logic and memory are required.