Which term refers to a contracting cloud of gas and dust that has the potential to form a star?

The term that refers to a contracting cloud of gas and dust with the potential to form a star is "Protostar." A protostar is the stage in stellar evolution that comes after a dense region within a nebula begins to collapse under its own gravity. During this phase, the material continues to accumulate, and as it does so, the temperature and pressure at the core of the protostar increase. Eventually, when conditions become suitable, nuclear fusion begins, leading to the formation of a new star.

In contrast, a nebula is the initial mass of gas and dust before it collapses to form a star, rather than the state of that material during the formation process. A red giant is a later stage in stellar evolution where a star has exhausted its core hydrogen fuel and expands significantly. An accretion disc is a structure formed by material spiraling in towards an object, such as a star or black hole, but it is not specific to the formation of a protostar itself.