Multiprogramming is a rudimentary form of parallel processing in which several programs are run at the same time on a uniprocessor. Since there is only one processor, there can be no true simultaneous execution of different programs. Instead, the operating system executes part of one program, then part of another, and so on. To the user it appears that all programs are executing at the same time.
For example, in many file systems, files always start at the beginning of a sector, because this simplifies organization and makes it easier to grow files. Any space left over between the last byte of the file and the first byte of the next sector is internal fragmentation. Similarly, a program which allocates a single byte of data is often allocated many additional bytes for metadata and alignment. This extra space is also internal fragmentation.
Another common example: English text is often stored with one character in each 8-bit byte even though in standard ASCII encoding the most significant bit of each byte is always zero. The "wasted" bits are internal fragmentation.
Similar problems with leaving reserved resources unused appear in many other areas. For example, IP addresses can only be reserved in blocks of certain sizes, resulting in many IPs that are reserved but not actively used. This is contributing to the IPv4 address shortage.
Unlike other types of fragmentation, internal fragmentation is difficult to reclaim; usually the best way to remove it is with a design change. For example, in dynamic memory allocation, memory pools drastically cut internal fragmentation by spreading the space overhead over a larger number of objects. wikipedia
e. Relocation. how often should it be performed?