What type of system is formed by two immiscible liquids with one dispersed in the other?

The correct choice is emulsion because it specifically refers to a mixture of two immiscible liquids where one liquid is dispersed throughout the other in small droplets. This phenomenon occurs when the two liquids, such as oil and water, do not blend well, and yet one is suspended within the other, often stabilized by an emulsifying agent.

Understanding emulsions is crucial in both pharmaceutical formulations and food products, as they allow for the combination of ingredients that usually wouldn't mix, thus creating stable and usable products. For example, creams and lotions in the cosmetic industry often rely on emulsions to maintain a combination of oil and water for optimal skin application.

In contrast, a suspension involves solid particles dispersed in a liquid, a solution is a homogeneous mixture where one substance is entirely dissolved in another, and a mixture refers to any combination of two or more substances that retain their individual properties. These distinctions highlight why emulsion is the most appropriate term for the described system of two immiscible liquids.