How does insertion sort operate?

Insertion sort operates by gradually building a sorted portion of the list, starting with the first element. The algorithm takes each element from the unsorted portion, one at a time, and finds the appropriate position for it within the sorted portion. This process involves inserting the current element into its correct position by shifting larger elements to the right.

As a result, after each iteration, the sorted section of the list grows larger until the entire list is sorted. This approach allows insertion sort to be particularly efficient for small datasets or partially sorted lists, as it optimizes the number of comparisons and movements needed to achieve a fully ordered array.

The other methods described in the incorrect choices do not align with this algorithm's operation. For example, sorting by comparing elements in pairs refers to the comparison-based sorting methods like bubble sort or selection sort, while selecting the largest value relates more to selection sort principles. Dividing the list into segments before sorting is characteristic of algorithms like merge sort or quicksort. Hence, the correct option accurately captures the fundamental mechanism of insertion sort.