The document discusses the source coding theorem, which establishes fundamental limits on lossy communication over error-free channels where the goal is information compression. It addresses how to determine the smallest rate needed to convey information about a source to a user while constraining the average error introduced by compression to a maximum level D. This problem is studied by rate distortion theory, which models the encoding-decoding process as a deterministic channel and defines a distortion measure for the penalty between source and decoded outputs. The rate distortion function gives the minimum mutual information needed to satisfy a given distortion level D.