How can setting the correct character encoding in PHP prevent display errors with special characters like umlauts?

Special characters like umlauts can cause display errors if the character encoding is not set correctly in PHP. To prevent these errors, you can set the character encoding to UTF-8 using the header() function in PHP. This ensures that the special characters are displayed correctly on the webpage.

<?php
header('Content-Type: text/html; charset=UTF-8');
?>