Windows 7 is categorized as System Software.

System Software
System software refers to programs that manage and control the operations of a computer system. It provides a platform for running application software and ensures the proper functioning of hardware components. System software interacts directly with the computer hardware and provides essential functions for the user and application software. Windows 7 falls into this category because it is an operating system developed by Microsoft.

Key Functions of Windows 7 as System Software:

1. Operating System:
- Windows 7 is an operating system that acts as an intermediary between the hardware and the user.
- It provides a user-friendly interface for users to interact with the computer.
- It manages computer resources such as memory, storage, and processing power.

2. Device Drivers:
- Windows 7 includes device drivers that enable communication between the operating system and hardware devices.
- These drivers allow peripherals such as printers, scanners, and keyboards to function properly with the computer.

3. File Management:
- Windows 7 provides a file management system that allows users to organize, store, and retrieve their files and folders.
- It offers features such as file searching, copying, moving, renaming, and deleting.

4. Security:
- Windows 7 includes built-in security features to protect the computer and user data.
- It provides a firewall, user account control, and antivirus software compatibility to safeguard against malicious threats.

5. System Maintenance:
- Windows 7 offers tools and utilities for system maintenance and troubleshooting.
- It includes features such as disk cleanup, disk defragmentation, and error checking to optimize system performance.

Conclusion:
Windows 7 is categorized as System Software because it functions as an operating system, manages hardware resources, provides device drivers, offers file management capabilities, ensures security, and includes system maintenance tools.