What does the code perform: dictionary = {"cat": "chat", "dog": "chien", "horse": "cheval"}; words = ['cat', 'lion', 'horse']; for word in words: if word in dictionary: print(word, "->", dictionary[word]) else: print(word, "is not in dictionary")?

The code iterates through a list of words and checks whether each word exists as a key in the provided dictionary. For each word in the list, it uses a conditional statement to determine if that word is present in the dictionary. If the word is found, it prints the word along with its corresponding value from the dictionary; if the word is not found, it indicates that the word is not present in the dictionary. This demonstrates the functionality of checking membership of list elements as keys in a dictionary, confirming the identification process for each word.

The other options do not accurately describe what the code does. The code does not count the number of words, does not print definitions (as it uses translations rather than definitions), and certainly does not sort the words in the dictionary. The primary focus of the code is on identifying the presence of list elements as keys in the dictionary, solidifying the reasoning behind the correct answer.