Step 1: Understanding the Concept:
This question relates to the magnetic effect of electric current, a fundamental principle discovered by Hans Christian Oersted.
Step 2: Detailed Explanation:
An electric current flowing through a conductor (like a wire) produces a magnetic field in the region surrounding it.
A compass needle is a small magnet that aligns itself with any external magnetic field.
When the compass is brought near the current-carrying wire, the magnetic field produced by the current interacts with the compass needle's own magnetic field.
This interaction exerts a torque on the needle, causing it to deflect from its usual North-South alignment.
Step 3: Final Answer:
Hence, if a compass is placed near a wire carrying an electric current, the compass needle will be deflected.