Course Taxonomy Category, Label, Topics - how are they distinct?

Problem/Motivation

I am trying out ANU LMS for some course creation on my Drupal site. On the first page, there are options for giving taxonomy "Category", "Label", and "Topic" for the course.

The documentation just says to set these as desired, but

1. what is the distinction between Category and Label? The only mentions in the docs gives as examples: Categories - People, Animals; Labels - Prehistoric, Modern.
2. Topics: for a course, there could be many topics since each module would typically be one topic. But also, for the given example, taking the Category and Label, "Prehistoric Animals" could also be a course topic.
3. Are Category and Label limited to one value each, but Topics can have multiple values?
4. How are the three taxonomy fields used within the module?

Just wondering what was envisioned as the purpose and usage of these fields. I am happy to add to the documentation if you would like, once I can understand it.

Thanks.