HTML5 Cache Manifest: Fallback section & Network *

Question

from Dive into HTML5: Cache Manifest: Fallback section

CACHE MANIFEST
FALLBACK:
/ /offline.html
NETWORK:
*

i dont understand from the URL given what this block of code exactly does. does the fallback section mean when anything is not found, show the offline.html page

then network: * all resources will be cached? it says also

It uses common CSS, JavaScript, and images on each page. Each of these resources would need to be listed explicitly in the CACHE

this seems to conflict to network: * where it seems to say cache everything?