How does a magnetic compass work?

A magnetic compass operates based on the principles of magnetism and the Earth's magnetic field. The correct answer highlights that the compass aligns itself with the Earth's magnetic field to indicate direction. Specifically, the compass needle is magnetized and will naturally point toward the Earth's magnetic magnetic north pole. This fundamental characteristic enables aviators to determine their heading relative to magnetic north while navigating.

The other options do not accurately describe the function of a magnetic compass. GPS technology, gyroscopes, and wind direction measurements are associated with other navigational instruments and systems that serve different purposes in aviation. Gyroscopic instruments assist with stability and orientation, while GPS equipment provides location and direction based on satellite signals, neither of which pertain to the basic operation of a magnetic compass. Additionally, the measurement of wind direction is a separate consideration for flight planning and navigation but not a function of the compass itself.