Global exception middleware in FastAPI intercepts every HTTP request before it reaches route handlers. It uses a try-except block around the call_next function that calls the next handler. If the handler runs without errors, the middleware returns the normal response. If an exception occurs, the middleware catches it and returns a JSON response with status code 500 and the error details. This prevents the server from crashing and provides a consistent error response. The execution table shows the step-by-step flow of request handling, exception catching, and response returning. Variables like request, response, and exception instance change state as the middleware processes the request. Key moments clarify why try-except is needed and how the middleware works globally. The quiz tests understanding of response flow and exception handling steps.