This lecture covers the principles of pulse oximetry, focusing on the estimation of oxygen quantity in the blood, the role of hemoglobin in oxygen saturation, and the Beer-Lambert law for light absorption. It explains how pulse oximetry works by measuring the absorption of red and infrared light in non-oxygenated and oxygenated blood, highlighting the importance of arterial volume change. The lecture also discusses the absorption coefficients of hemoglobin with and without oxygen, and how to calculate oxygen saturation using absorbance measurements at different wavelengths.