Merge means to merge. Two things are merged into one, creating a single file. For example, two sandwich shops merge to become Chez Cheese. Another use of merge is in creating form letters. The merged text appears in the center of the letter, and the names appear to be interchanged. However, it is important to note that the merging does not necessarily mean that the two things are truly joining.
When merging two or more files, the merge process will first check for sections that are the same in all three files. If they are, Git will discard the version in the common ancestor "C." This will leave the version in "A" and "B" unchanged. However, if a section exists in all three files, it will be marked as a conflict.