3. Network Layer (Layer 3) :

The network layer works for the transmission of data from one host to the other located in different networks. It also takes care of packet routing i.e. selection of the shortest path to transmit the packet, from the number of routes available. The sender & receiver’s IP addresses are placed in the header by the network layer. 
The functions of the Network layer are :  

1. Routing: The network layer protocols determine which route is suitable from source to destination. This function of the network layer is known as routing.
2. Logical Addressing: In order to identify each device on internetwork uniquely, the network layer defines an addressing scheme. The sender & receiver’s IP addresses are placed in the header by the network layer. Such an address distinguishes each device uniquely and universally.

OSI stands for Open Systems Interconnection. It has been developed by ISO – ‘International Organization for Standardization‘, in the year 1984. It is a 7 layer architecture with each layer having specific functionality to perform. All these 7 layers work collaboratively to transmit the data from one person to another across the globe.