Computer applications, such as word processors, browsers, and media players, are programs made up of coded instructions that run on a computer. Anything that consists of programs and instructions, rather than physical components, falls under the general category of software.
Since computer applications are a specific type of program designed to help users perform tasks, they are, by definition, a subset of software. Every application is software, even though not every piece of software is a user-facing application (some software, like an operating system, runs in the background).
Hardware refers to the physical, tangible parts of a computer, such as the processor or hard drive, which is the opposite of what an application is. "Computer utilities" and "program packages" describe narrower or looser groupings and are not the correct general category that applications belong to.
Examination reminder: remember that every computer application is a type of software, but software is the broader term that also includes system-level programs the user never directly opens.