The device partially detonated when the officer drove over a speed ramp at Hillsborough Drive, at 7.10 this morning.
The 52-year-old man, a father-of-three, is in a stable condition in hospital.
It is understood the prison officer works in the Prison Service Training Centre at Hydebank College in Belfast.
Deputy Smith said: "This is a despicable act which I and the Fianna Fáil party wholly condemn. While it is too early at this stage to know who perpetrated this attack it nevertheless serves as a reminder that the peace secured in Northern Ireland is fragile and it must not be taken for granted.
"Today’s appalling attack underscores that individuals and groups still exist who seek to destabilise the peace process. Public representatives and political parties both North and South of the Border need to redouble and renew their efforts to ensure that those who seek to undermine the peace secured in Northern Ireland do not gain traction.
"Fianna Fáil is committed to Northern Ireland and to the full realisation of the peace process. This will be a priority for us as a Party in the 32nd Dáil," he said.