1) A group of 4 students created an LDR based light detector circuit using components like an LDR light sensor, 2.7k resistor, BD140 transistor, 3.7V battery, SPST switch, and 4V LED.
2) The circuit functions by using an LDR light sensor to generate a signal based on light intensity which is then amplified using a BD140 transistor to power a 4V LED, creating a light-detecting circuit.
3) Key components like the LDR, resistors, transistors, batteries, switches, and LEDs are described in terms of their electrical properties and functions within circuits.