I. AWS IAM provides identity and access management for AWS services and resources. It allows customization of access controls through policies and provides features like MFA and identity federation. IAM roles are preferable to users where possible for additional security.
II. EC2 allows launching virtual computing instances in AWS. AMIs contain templates for instances including the OS. Instance types determine hardware configurations. Security groups act as virtual firewalls controlling traffic to instances. EBS provides persistent storage volumes for instances.
III. Core AWS services discussed include IAM, EC2, S3, RDS, CloudWatch which provide fundamental cloud capabilities for security, computing, storage, databases and monitoring.