Lateral inhibition serves the purpose of:

Lateral inhibition is a fundamental neural mechanism that enhances the perception of sensory information by creating contrast and sharpness in the detection of stimuli. When a sensory cell is activated, it not only sends excitatory signals to the brain but also inhibits its neighboring cells. This process sharpens the response to the initial stimulus by making the activated cell's signal stronger in comparison to the surrounding, inhibited cells. As a result, the brain can more easily perceive edges and differences in the stimuli, which is particularly important in visual and somatosensory processing.

While other answers touch upon relevant aspects of sensory processing or inhibition, they do not accurately capture the primary role that lateral inhibition plays in enhancing sensory perception through the inhibition of neighboring cells. Therefore, recognizing that lateral inhibition acts to enhance contrast and detection through this inhibition mechanism is key to understanding its function in sensory perception.