Help to understand scaffold's code!

Follwed a Guide at http://guides.rubyonrails.org/getting_started.html.Generated
a scafffold as

   rails generate scaffold Post name:string title:string content:text
                                     The content of app/view/posts/
index.html.erb file are as under

<h1>Listing posts</h1>

<table>
  <tr>
    <th>Name</th>
    <th>Title</th>
    <th>Content</th>
    <th></th>
    <th></th>
    <th></th>
  </tr>

<% @posts.each do |post| %>
  <tr>
    <td><%= post.name %></td>
    <td><%= post.title %></td>
    <td><%= post.content %></td>
    <td><%= link_to 'Show', post %></td>
    <td><%= link_to 'Edit', edit_post_path(post) %></td>
    <td><%= link_to 'Destroy', post, :confirm => 'Are you
sure?', :method => :delete %></td>
  </tr>
<% end %>
</table>

<br />

<%= link_to 'New Post', new_post_path%>

                           Now look at following line of code,and
please help me to understand it
1) <% @posts.each do |post| %>
is it will execute when at least one post will be created??)

2) <td><%= post.name %></td>
    <td><%= post.title %></td>
    <td><%= post.content %></td>

(is it will get a values from database?)

Thanks

Look at the code on posts_controller.rb index method

See in app/controller/post_controller.rb file
in that there is a code for index in
def index
.
.
.
end

when you make any request above function will call first and then goes to index.html.erb file.
Now you can explore more things by tracing the code.