Each block of the set associative cache memory has capacity of 4 words of 16-bits, one section has 2 blocks. Whole cache memory has 4096 words.
I do not understand the differences between these bold ones. Aren't they the same?
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I'm sure you are missing a whole sentence or paragraph, but it tells you the cache size is 4096 words broken into blocks of 4 works. That's 1024 blocks. Those are further divided into sections with one section 2 blocks in size.
After that you need more information.
No, it says each BLOCK has 4 words, and each word has 16 bits. Thus a block has 64 bits. Then it says, a SECTION has 2 blocks i.e 8 words, or 128 bits. The whole cache is 4’096 words, which would be 512 sections or equivalently 1’024 blocks, or 65’536 bits.