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A pulse oximeter measures the percentage of hemoglobin saturated with oxygen in a person's blood. This device utilizes light absorption characteristics of oxygenated and deoxygenated hemoglobin to provide a non-invasive estimate of arterial oxygen saturation (SpO2). It plays a crucial role in monitoring oxygen levels, particularly in clinical settings, allowing healthcare providers to quickly assess a patient's respiratory status and make informed decisions regarding oxygen therapy and other interventions.

The other options refer to different physiological measurements. The level of carbon dioxide in the blood is typically assessed by capnography rather than pulse oximetry. Respiratory rate is measured through observation or specific monitoring devices, and blood pressure is evaluated using sphygmomanometers or other BP monitors. Thus, the pulse oximeter specifically focuses on oxygen saturation, making the presented answer accurate in highlighting its primary function.