Concept:
In GIS, raster data represents the world as a grid of cells or pixels, where each cell stores a value. It is well suited to continuous phenomena such as elevation, temperature and rainfall, and it usually needs large storage because every cell holds a value.
Step 1:
True statements about raster data are that it is made up of pixels, that it represents continuous data smoothly, and that it tends to have a larger file size because of the many cells.
Step 2:
Discrete features such as individual points, lines and well-defined boundaries are best handled by vector data, not raster. So calling raster data discrete data is the incorrect statement.
Answer: Option (1) — Discrete Data.