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Sophos' Web Filtering feature provides administrators with the ability to establish policies that specifically restrict or allow access to certain categories of websites. This functionality is crucial for organizations that wish to maintain a safe browsing environment for their users, as it helps in blocking undesirable content while allowing access to appropriate resources.

By setting these policies, administrators can tailor web access according to the organization's guidelines and regulatory requirements, ensuring that employees can use the internet effectively without exposing themselves or the organization to unnecessary risks. This capability supports not only security objectives but also enhances productivity by preventing access to non-work-related sites.

The other options do not relate directly to the core function of web filtering within the Sophos framework. For example, changing user passwords pertains to account management, creating network traffic reports falls under monitoring and analytics, and unrestricted monitoring of user activity addresses privacy and compliance issues rather than web content regulation. Thus, the ability to set web access policies stands out as the primary function of Sophos’ Web Filtering.