This chapter discusses inheritance and polymorphism in object-oriented programming. Key points include:
1. Defining classes in an inheritance hierarchy allows sharing of common properties and behaviors while also allowing specialization.
2. Abstract classes cannot be instantiated but serve as base classes that concrete subclasses extend.
3. Polymorphism allows a variable to refer to objects of different subclasses, enabling flexible code.
4. The example problem involves reading student data from a file and calculating grades polymorphically based on undergraduate or graduate status.