How does urbanization impact the environment?

Urbanization significantly impacts the environment through habitat loss and increased pollution, making this the correct choice. As cities expand to accommodate growing populations, natural landscapes are often converted into urban areas, leading to the destruction of ecosystems. This process can displace wildlife and disrupt the natural balance of flora and fauna, contributing to a decline in biodiversity.

Additionally, urban environments are associated with higher levels of pollution due to increased construction, vehicle emissions, and industrial activities. As cities grow, the concentration of pollutants in the air, water, and soil generally rises, which can have harmful effects on local ecosystems and public health. The combination of habitat loss and heightened pollution levels presents serious challenges for the environment, impacting everything from air quality to climate change.

Therefore, the reality of urbanization's adverse effects on the environment illustrates why this option is the most accurate reflection of its consequences.