Server Administration :: How Oracle Implements Undo Management

I have been reading various articles about the undo management. This basic concept of undo management is simple but how oracle implements it is bit harder for me to grasp.

What i have read and understood is that whenever a DML(Update, Delete, Insert) statement is issued by a user, the data is fetched from datafile to database buffer cache and at the same time a copy of the original data is saved in undo segment. Now if other users requests the same data, they are presented with the unchanged copy in the undo segment.

Now I have the following questions:
1) In case of Insert statement, what data is saved in undo segment. Is it the complete data in the table to which we want to insert the new row?
2)When the user issues DML statement, there are three copies of the same data, one in Memory (which is changed and not the same as original data), second in Undo segment (Which is unchanged copy of original data) and third in datafile file ( which is original data). What is the difference in the data in undo segment and data in datafile at this stage. Why are the other users presented with the data from undo segment rather than original data from the datafile to maintain read consistency.
3)When the user issues rollback, the changes made to the copy of data in memory are undone.The copies of data in memory and undo segment are now same?. What happens to the before change copy in undo segment. Is it still there or deleted.