Which filesystem format is natively supported by Windows for compression and extraction?

The filesystem format natively supported by Windows for compression and extraction is ZIP. This format is integrated into the Windows operating system, allowing users to create and manage ZIP files without the need for additional software. Windows Explorer provides built-in functionality to compress files into a ZIP archive as well as to extract files from ZIP archives, making it a convenient choice for file compression.

Other formats mentioned, such as TAR and RAR, require third-party software for handling in Windows. TAR files, often used in Unix and Linux environments, and RAR files, which use proprietary compression algorithms, are not natively supported. Additionally, DMG files are specific to macOS and are not compatible with Windows systems. Thus, ZIP stands out as the correct answer due to its native and direct support in the Windows environment, facilitating easy file management.