1) A marine gyrocompass uses a freely-spinning gyroscope to determine direction based on the principles of angular momentum and the earth's constant rotation.
2) A gyroscope has three degrees of freedom - it can spin about its axis and tilt or turn in horizontal and vertical planes. The earth acts like a giant free gyroscope due to its mass, high-speed rotation, and lack of friction in space.
3) The gyroscope's angular momentum and inertia cause it to resist changes to its axis of spin, allowing it to maintain a fixed direction in space independent of the ship's movements. This gyroscopic property is used to determine true north.