I apologize for any confusion. Let's clarify the role of the European Council in the European Union:
The European Council is primarily responsible for defining the EU's overall political direction and priorities, but it does not have legislative powers to pass laws or adopt budgets. Those functions belong to the European Parliament and the Council of the European Union. The European Council does not resolve disputes among member states—that role primarily falls to the Court of Justice of the European Union. It also does not directly ensure legislation is applied fairly, which is more in the domain of the European Commission.
Given these clarifications, the most accurate answer concerning the European Council's role would be that it sets the EU's overall political direction. However, since that is not one of your provided options, please note that the European Council's function is more about policy direction rather than specific legislative or legal responsibilities.
If you have specific information or teaching materials that indicate a different function in your context, please share, and I can help clarify further!