The attachInterrupt() function in Arduino sets up a pin to watch for signal changes. When the specified event happens, it runs a small special function called an ISR (Interrupt Service Routine). In the example, the program watches pin 2 for a rising edge (signal going from LOW to HIGH). When this happens, the ISR 'increment' runs and increases the 'count' variable by one. The variable 'count' is declared volatile because it changes inside the ISR and is used outside. The ISR runs quickly so the main program can continue without delay. The execution table shows each step: setting up, waiting, detecting signal changes, running ISR, and updating 'count'. This helps beginners see how interrupts work step-by-step.