This example shows how the continue statement with levels works in PHP nested loops. The outer loop runs with variable i from 1 to 2. The inner loop runs with j from 1 to 3. When j equals 2, the code uses continue 2 to skip the rest of the current iteration of the outer loop. This means it stops the inner loop and moves to the next i value. The output prints only when j is not 2. The execution table traces each step, showing variable values, condition checks, actions, and output. The variable tracker shows how i and j change after each step. Key moments clarify why output is skipped and what continue 2 means. The quiz tests understanding of variable values and continue behavior. The snapshot summarizes the concept for quick review.