Emulsification refers to the process of breaking down fats or oils into smaller globules. This is accomplished by a substance called an emulsifier, which helps to disperse the fat molecules in water. Option 1 correctly states that emulsification is the breaking of fats into small globules. This process is important in digestion as it increases the surface area of fats, allowing for easier digestion and absorption. In the digestive system, emulsification occurs in the small intestine with the help of bile salts produced by the liver. These bile salts act as emulsifiers and aid in the breakdown of fats. Once emulsified, the small fat globules can be further broken down by enzymes called lipases. Therefore, option 2 (digestion of fats) is not completely accurate as emulsification is just one part of the overall process of fat digestion. Options 3 (absorption of fats) and 4 (storage of fats) are not correct explanations of emulsification.