Which of the following descriptions best describes how IoT works?

The best description of how IoT works is that it consists of a set of things, connected to the Internet, which collects insights. This definition encapsulates the fundamental principle of the Internet of Things, where various devices (or 'things') are connected to the internet, enabling them to communicate with each other and with central systems.

These devices are equipped with sensors, software, and other technologies that allow them to gather data from their environments. This collected data can then be analyzed to provide valuable insights. This process helps in making informed decisions, optimizing processes, and enhancing operational efficiencies across various industries.

The other options capture specific aspects or applications of IoT but do not encompass the broader concept. For instance, while remote monitoring for health maintenance and real-time data and alerts in logistics are important applications of IoT, they are not comprehensive enough to define how IoT fundamentally operates. Similarly, although a microcontroller unit is a crucial component in many IoT devices, it speaks more to the hardware aspect rather than the overarching concept of connectivity and data insight generation in IoT.