Chapter 3 discusses processes and process scheduling. Key points include: - A process is a program in execution and includes the program counter, stack, data section, and process state. - The operating system uses process scheduling queues like ready queues and I/O queues to manage processes in memory and waiting for I/O. - Schedulers like long-term and short-term schedulers select which processes execute and allocate CPU time. - Processes can cooperate through interprocess communication using message passing or shared memory. Communication links allow processes to exchange messages.