Name the principle on which it works.

Explanation

**Step-by-Step Text Solution:**

1. **Understanding the Question**: The question asks for the principle on which an AC generator, also known as a dynamo, operates.

2. **Identifying the Function of an AC Generator**: An AC generator is a device that converts mechanical energy into electrical energy, specifically alternating current (AC).

3. **Principle of Operation**: The operation of an AC generator is based on a fundamental principle in physics.

...