The fuse protects electric circuits from excessive current by containing a wire that melts when overheated. There are two main types: replaceable wire fuses and cartridge fuses. The fuse rating indicates the maximum current it can withstand without melting. Fuses should be rated slightly higher than the appliance's normal current to prevent tripping during regular use. Earth wires connect appliances to ground and provide a path for current in case of a loose live wire, preventing electric shocks.