The correct answer is Modulator Demodulator System.In computer, MODEM stands for Modulator Demodulator.MODEM is a hardware component that allows a computer or another device, such as a router or switch, to connect to the Internet. MODEM modulates an analogue signal from a telephone or cable wire to digital data i.e. 1s and 0s that a computer can recognize.It also converts digital data from a computer into an analogue signal that can be sent over standard telephone lines.