Reverberation is the prolonging of a sound in an enclosed space caused by repeated reflections from the walls, floor and ceiling arriving at the listener slightly after the direct sound. In a large hall with hard, smooth surfaces the reflected sound persists for a long time, so syllables overlap and speech becomes blurred. Reducing reverberation means reducing the energy of those reflections.
Perforated materials, along with soft boards, curtains and padded seats, are good absorbers of sound. Sound waves entering the small holes are repeatedly reflected inside the pores and against the fibres, and the energy is gradually converted into heat by friction, so very little is reflected back into the hall. Lining the walls with such material therefore shortens the reverberation time and improves the clarity of speech and music.
The other effects listed are not what the lining changes. Diffraction is the spreading of a wave as it passes an obstacle or through a gap, and it depends on the wavelength compared with the size of the gap, not on absorption. Refraction is the change in direction of a wave when its speed changes on entering a different medium, which is not the phenomenon at work here. There is no recognised acoustic quantity called an auditorium pulse. Keep the distinction sharp in the examination: echoes and reverberation are reflection phenomena, so they are controlled by absorbers, whereas diffraction and refraction are controlled by geometry and by the medium.