Which type of hair is often referred to as "peach fuzz" and is fine and short?

Vellus hair is indeed described as "peach fuzz." This type of hair is fine, short, and typically less pigmented than other hair types. It is commonly found on most of the human body, especially in areas such as the face, arms, and legs. Vellus hair serves important functions, such as providing insulation and helping with the sensory perception of the skin.

In contrast, terminal hair is thicker, longer, and darker and usually develops during puberty, particularly in areas such as the scalp, underarms, and pubic regions. Androgenic hair refers to hair that develops in response to androgens, typically in regions like the beard area for men, and it's also coarser and more pigmented. Lanugo hair is a type of fine, soft hair that covers a fetus in the womb and typically sheds shortly before or after birth. Therefore, vellus hair is the correct answer, as it specifically refers to the soft, fine hair often likened to the texture of peach fuzz.