What does CPU usage mean?

What does it mean, when a CPU usage of a core is 100 percent?

Does it mean that a process has peaked the maximum possible performance of a core (with vectorization) or does it mean that the CPU is doing as many cycles as the core clock is?

Also, if it is 100 percent, can I imply that the process is CPU bound, i.e. a faster and bigger Cache, Memory, bus, etc. will not make any difference?

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