A rainbow is formed through the refraction, dispersion, and reflection of light in water droplets, resulting in a spectrum of colors visible to the observer. It involves multiple droplets at various heights, with each droplet contributing to the overall appearance of the rainbow. The light entering each droplet is refracted and then reflected internally before exiting, creating the distinct colors. Both interpretations of the formation process are valid, as they describe different aspects of the phenomenon. Understanding the science behind rainbows enhances appreciation for this natural spectacle.