Is it possible to say that internal fragmentation occurs only in physical memory and external fragmentation occurs only in virtual memory ? If we can't say that, could you explain where internal and external fragmentation can happen ?
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I disagree that internal fragmentation occurs only in physical memory. The unused memory is also marked as used in the free list, and it's when using this free list that the OS allocates more than what is needed. I would argue that the problem of internal fragmentation doesn't occur in any one type of memory, but is an issue of the allocation algorithm the OS is using. It's an issue in both.

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