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Which device works on the principle of Mutual induction?

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Answer
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Hint: Mutual inductance occurs when one magnetic field interacts with another. The mutual inductance concept governs the operation of transformers, motors, generators, and other electrical equipment. Mutual induction occurs when a current flows through one coil or winding and induces a voltage in another coil.

Complete answer:
A transformer is a device that operates on the principle of mutual induction. A transformer is a device that converts alternating current (AC) from one voltage to another.
A transformer consists of two coils, known as the primary and secondary coils. The coils wrapped around a soft iron core. To reduce eddy currents, the iron core is laminated. The transformer's input is applied across the primary coil, and its output is acquired via the secondary coil.
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The transformer's principle working concept is based on mutual inductance between primary and secondary circuits that are linked by a shared magnetic flux. The two coils are electrically isolated yet magnetically coupled via a reluctance channel.

Additional information:
Transformer:
In its most basic form, a transformer is something that steps up or steps down voltage. However, when we investigate it further and concerning electric current, it is defined as a static device that changes the level of voltage between circuits. The transformer is essentially a voltage control device that is frequently utilized in alternating current power distribution and transmission.
Michael Faraday first proposed the concept of a transformer in 1831, and it has since been advanced by several other famous scientific thinkers. The general objective of utilizing transformers, however, was to maintain a balance between the electricity generated at very high voltages and the electricity used at very low voltages.

Note: Overall, a transformer performs the following functions:
Electric power transmission from one circuit to the other.
Electromagnetic induction is a method of transferring electrical electricity.
Transfer of electric power with no change in frequency
Mutual induction connects two circuits.