Experiment No. 3 verifies half adders and full adders using basic and universal gates. It discusses the theory of multiplexers, which are devices that select between input signals and forward a single output. Multiplexers have select lines to choose the input line sent to the output. They are used to increase data transmission efficiency over networks. The document also contains circuit diagrams and outputs of half adders and full adders implemented using XOR, NAND, and NOR gates. Applications of multiplexers include increasing communication system efficiency, use in computer memory, and integrating multiple audio signals for telephone network transmission.