1) Timing diagrams display the initiation and transfer of read/write and data operations under the control of status signals like IO/M, S1, and S0, with the clock signal CLK controlling the proper operation. 2) The microprocessor divides each instruction into a fetch cycle and execute cycle as it processes instructions sequentially stored in memory. 3) For example, when fetching the opcode 41H stored at memory location 2105H, the microprocessor sets IO/M low and S1 and S0 high to indicate a fetch, sends the 16-bit address on the address bus, and uses control signals like RD to read the opcode from memory and transfer it to the instruction register for decoding.