The document discusses image interpolation and its use in data hiding. It begins by explaining common interpolation methods like nearest neighbor, bilinear, and bicubic interpolation. It then proposes using neighbor mean interpolation for data hiding. The secret data is embedded in the interpolated image by modifying pixel values in 2x2 blocks. During extraction, the secret bits are recovered from differences between pixel values. An improved method is also presented where pixels are grouped to increase embedding capacity before modifying for data hiding.