Would one of you please explain the following code to me step by step?

Sub test()
Dim x As Range
On Error Resume Next
Set x = Application.InputBox("Select the cells.", Type:=8)
If Err.Number < 0 Then
MsgBox ("You Cancelled The Operation.")
Exit Sub
On Error GoTo 0
End If
MsgBox (x.Address)
End Sub

All I want to do is create an inputbox which ONLY upon hitting the Cancel
Button would display the msgbox "You Cancelled The Operation." and not on any
other error.

All your help and expert advice shall be obliged.

Thanx in advance.