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What is the difference between the Auto-format, HTML and Plain text Format options?

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What is the difference between the Auto-format, HTML and Plain text Format options?

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Auto-Format: Posts retain formatting as they are entered, however, entries can contain HTML. Additional HTML is inserted to maintain formatting. Text entered: line one line two line three Actual output: line one line two line three HTML: Posts are interpreted strictly as HTML. No additional processing is done. Text entered: line one line two

line three Actual output: line one line two line three Plain Text: Posts are interpreted strictly as text. HTML is inserted to maintain formatting, however, any HTML present in the content will be displayed as code.

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