Introduction:
One of the most often misunderstood aspects of Windows Server 2003 is the application of a group policy. The policy is the main method by which permissions, user rights, computer settings, and security within a Windows Server 2003 domain are managed. A group policy is managed by settings within GPOs. These are nothing more than batches of settings that are then linked to the other objects, such as sites, domains, OUs, and Nested OUs. These objects pass on their settings to their child objects. For ex, a domain passes its setting to the OU and the OU passes its setting to the nested OU. This controls which policies apply to which elements.

Tasks:
In your own words, describe the application of a group policy. You can use the following pointers when describing the application of group policies: 

If you had a particular group that needed to configure the option of backing up their files and directories, would that group be in its own OU or would you link a GPO that permitted those activities to the group? 

If the standard users in the domain do not have file backup permission, what would be the best way to provide the permission? 

Would block inheritance or No Override come into play? 

First, the local computer policy is applied. Next, the site policy is applied. Then, the domain policy is applied. Next, the OU policy is applied. Finally, the nested OU policy is applied. What does this mean for the resultant policy? 
How does the application of the computer configuration before the user configuration influence the resultant policy?