The assignment involves creating a simple shell in C, named smallsh, which replicates basic shell functionalities like executing commands, supporting input/output redirection, and handling foreground and background processes, along with three built-in commands: exit, cd, and status. The shell will have a maximum command line length of 2048 characters and will not include many advanced features found in other shells. A grading script is provided to test the implementation, and submissions must include the source code and a readme.txt file with compilation instructions.