What is the purpose of the 'Web API' in Dynamics 365?

The primary purpose of the 'Web API' in Dynamics 365 is to enable programmatic access to data and functionality over HTTP. This RESTful web service allows developers to interact with Dynamics 365 data using standard HTTP methods such as GET, POST, PUT, and DELETE, making it easier to create, read, update, and delete records within the system.

By utilizing the Web API, applications built on or integrating with Dynamics 365 can perform operations on the data without requiring direct access to the underlying database. This is particularly useful for building external applications or integrations that need to work with Dynamics 365 data securely and efficiently. Furthermore, the API supports various programming languages and platforms, providing flexibility for developers to implement solutions as needed.

In contrast, the other options refer to different functionalities that are not primary focuses of the Web API. For instance, while importing data from external sources is an important capability, it is typically managed through data import functionalities and tools rather than specifically through the Web API. User authentication processes are essential for security but are part of the broader identity and access management system. Storing application configuration settings is a separate requirement unrelated to the API's function, as it deals more with the management of application behaviors and settings.