Composite formatting in C# lets you create strings with placeholders like {0} and {1}. You write a format string with these placeholders and then call string.Format with the format string and values to insert. The method replaces each placeholder with the corresponding argument by position, starting at zero. For example, {0} is replaced by the first argument, {1} by the second, and so on. This produces a new string with the values inserted. You can then print or use this formatted string. This method helps make output clear and easy to change without string concatenation. The execution trace shows defining variables, calling string.Format, and printing the result step by step.