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Stealth Mode in Firewall settings serves a specific function to enhance the security of a system by making it less detectable on a network. When Stealth Mode is activated, the firewall does not respond to unsolicited network requests, which means that any probes or scans performed by external entities will not receive a reply. This non-response effectively makes the Mac invisible to potential attackers, as they won't be able to identify that the device exists on the network or what services it might be offering.

This mode is particularly useful in preventing unwanted access attempts because, while the device remains connected to the network, it does not engage with any unauthorized asking requests, thereby reducing the possibility of being targeted. The other options do not accurately describe this functionality; for example, blocking all incoming connections is a more general action that doesn't necessarily relate to invisibility, while allowing responses to network requests goes against the principle of Stealth Mode. Encrypting network traffic is also a different security measure that focuses on data confidentiality rather than visibility on the network. Thus, the correct definition of Stealth Mode is centered on its ability to obscure the presence of the Mac from potential threats.