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The definition of MVFR, or Marginal Visual Flight Rules, is characterized by specific conditions regarding ceiling and visibility that can impact flight operations. The correct answer indicates a ceiling ranging from 1,000 to 3,000 feet and visibility between 3 statute miles (SM) and 5 statute miles (SM).

This range is significant because it represents a transitional state where pilots may operate visually but may encounter challenges that require careful navigation or additional pilot skills. It clearly falls into the category of marginal since the conditions do not meet the more restrictive criteria of VFR (Visual Flight Rules), which necessitate higher ceilings and visibility.

Understanding MVFR is crucial for pilots, dispatchers, and flight planners as it marks a phase where visual flight can be complicated. This sensitivity to conditions is vital, especially when making decisions about whether to proceed with a flight or consider alternate planning.

In terms of the other choices, they do not fall within the established parameters of MVFR. Conditions that define VFR or IFR (Instrument Flight Rules) involve either clearer ceilings and visibility or poorer conditions, which do not align with the MVFR criteria. Hence, the specific range provided in the correct answer captures the essence of what MVFR entails.