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An OS is an operating system. Open source means that the source code is freely available for end users to improve or include in other projects, provided they agree to follow the licensing terms. The terms usually require that resulting projects also be open source as well and that the parent project has the right to also use some of their code if desired.

As for latest, there is debate as to which one is the latest. There are certainly modern versions of Linux derivatives. ReactOS is an open source Windows clone. It certainly needs lots of work, but ReactOS runs well on some hardware and runs quite reliably under a virtual machine. It is still an alpha stage OS, as it has been for many years, but it is still active and slowly getting there.

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