Final answer:
Cell differentiation is the process by which unspecialized cells become specialized to carry out distinct functions. Stem cells have the potential to differentiate into specialized cells. Gene expression and transcription factor proteins play a crucial role in determining the characteristics of differentiated cells.
Step-by-step explanation:
Cell differentiation is the process by which unspecialized cells become specialized to carry out distinct functions. Stem cells are unspecialized cells that can divide without limit and, under specific conditions, differentiate into specialized cells. The differences in gene expression dictate a cell's unique characteristics, and the primary mechanism that determines gene expression is the use of transcription factor proteins.