Which term refers to the forgiveness of a crime and the cancellation of the relevant penalty?

The term that refers to the forgiveness of a crime and the cancellation of the relevant penalty is "pardon." A pardon is an official decision by a governing authority, such as a president or governor, to forgive an individual for a criminal offense, effectively absolving them of the legal consequences associated with that offense. This can restore the individual's civil rights, allowing them to move forward without the stain of a conviction.

Pardons can occur for various reasons, including demonstrating rehabilitation or serving the public good, and are often seen as acts of grace. The specifics of how pardons are applied and the process involved can differ significantly between jurisdictions.