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Prostaglandins are a group of lipid compounds that have hormone-like effects in the body. They are classified as local hormones because they are synthesized and act near where they are produced. Prostaglandins are derived from fatty acids and play key roles in various physiological functions, including the regulation of inflammation, blood flow, the formation of blood clots, and the induction of labor.

Their diverse effects arise from their ability to interact with various cells and tissues, leading to a multitude of responses. For instance, prostaglandins can mediate pain and fever and are involved in the inflammatory response. They are also crucial in functions such as the contraction and relaxation of smooth muscles and the regulation of gastric acid production.

The other options provided do not accurately describe prostaglandins. While hormones have broad categories, prostaglandins are not limited to the pancreas nor exclusively involved in inflammation; instead, they function in many physiological processes throughout the body. Additionally, prostaglandins are not enzymes; enzymes are biological catalysts that facilitate chemical reactions, unlike prostaglandins, which are signaling molecules.