Wool

Wool is a block obtained from sheep that can be dyed any of the 16 colors.

Breaking
Wool can be broken by any item or by hand, but a sword is quickest.

Mob drop
Sheep will drop 1 - 3 wool when sheared.

Dyed sheep will drop 1 - 3 dyed wool of their respective color when sheared.

Fuel
Wool can be used to smelt 1.5 items in a furnace or 3 items in a forge.