The term "terminal velocity" refers to:

The term "terminal velocity" refers to the maximum speed an object reaches during free fall when the forces acting on it are balanced. In free fall, an object accelerates until the force of air resistance (drag) becomes equal to the force of gravity pulling it downward. At this point, the net force on the object is zero, meaning it no longer accelerates.

Therefore, the correct answer captures the essence of terminal velocity accurately by highlighting that it represents the peak speed achieved during free fall. The object continues to fall at this constant speed until it impacts with another object or surface, demonstrating that it has reached an equilibrium state between gravitational pull and air resistance.