The document discusses the Fabry-Perot interferometer, an optical sensor used to measure small displacements. It consists of two parallel mirrors separated by a cavity, and works by detecting changes in the frequency of light transmitted through the cavity when the mirror spacing changes due to environmental factors like pressure, strain, or temperature. Measurements with an accuracy comparable to the wavelength of light are possible. Applications include pressure sensing, where pressure deflects a diaphragm and alters the cavity length. Advantages are small size, accuracy, and insensitivity to environmental effects. Disadvantages include high cost and unsuitability for high pressures.