Resolution is the internal property of the system and it is given by all hardware components evaluating the result. For example, a temperature sensor (microwire) can have a sensitivity of 0.1 °C on a certain scale, but hardware components provide the smallest detectable step of 1 °C, therefore sensor responses below 1 °C changes will not be detected.
A signal from the sensor is usually transformed into an electrical response. This needs to be digitised (usually by an A-D converter), thus the resolution is given by the number of possible steps (recalculated in bits), which can be distinguished by the AD converter . The following table describes the smallest detectable step in the case of a 4-bit device in a different range mode. The 4-bit device provides only 24 = 16 possible steps, which can be detected through the whole range.
TABULKA
In other words, resolution represents the ratio between the maximum possible measured value and the smallest possible change.
VZOREC
NOTE: Half value of the device's resolution is called uncertainty. For example, resolution of a voltmeter is 1 mV, then the uncertainty of the voltmeter is ±0.5 mV.
Read this blog if you want to understand more about the Difference between Accuracy and Resolution