Derivative error compensation is a technique used in control systems to improve the system's response to changes or disturbances. It involves adding a derivative term to the controller's output, which is proportional to the rate of change of the error.

Derivative Error Compensation and Damping:

1. Damping: Damping refers to the ability of a control system to reduce oscillations and improve stability. It is influenced by the presence of a derivative term in the controller.

2. Derivative Term: The derivative term in the controller helps in reducing the overshoot and settling time of the system response. It provides additional damping to the system.

Explanation:

When derivative error compensation is applied in a control system, the following effects can be observed:

1. Damping Increases: The addition of the derivative term in the controller increases the damping of the system. This means that the system's response to changes or disturbances will be smoother and more stable.

2. Setting Time Decreases: Setting time refers to the time taken by the system to reach and settle within a specified range of the desired value. With derivative error compensation, the settling time decreases. This is because the derivative term helps in reducing the overshoot and the oscillations in the system response, allowing it to reach the desired value faster.

Therefore, the correct answer is option 'D' - damping increases and setting time decreases in derivative error compensation.

Conclusion:

Derivative error compensation is a technique that enhances the performance of control systems by adding a derivative term to the controller's output. This additional term increases the damping of the system and reduces the settling time. By understanding the effects of derivative error compensation, we can design control systems that are more stable and responsive to changes or disturbances.