Solution:Reflection and Diffraction :When sunlight hits a CD, the rainbow-like colors observed are due to the interaction of light with the CD's surface and structure. Reflection occurs as light bounces off the CD's surface, but it alone doesn't explain the dispersion of colors. Diffraction, the bending and spreading of light waves around obstacles, is crucial here. CDs have microscopic grooves that diffract light, dispersing it into a spectrum similar to a prism. Transmission, the passage of light through the CD, is minimal in creating the rainbow colors. Refraction, the bending of light through different mediums, is also not the main factor. Therefore, the primary mechanisms responsible for the rainbow colors on a CD are reflection and diffraction. The grooves on the CD's surface cause diffraction, and the microscopic structure reflects light, leading to the observed spectrum.