What is the difference between the SPListItem.Update() and SPListItem.SystemUpdate() methods?

The SPListItem.Update() method is the general use by which the data is a updated to the list along with the changes to the fields Modified, ModifiedBy and to the Version, if it is enabled.

But by using the method SPListItem.SystemUpdate(), the changes are reflected to the list but there is no change in the Modified, ModifiedBy field and the Version is also not updated if enabled.

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