Relative humidity
Relative humidity is the ratio of the current absolute humidity to the highest possible absolute humidity (which depends on the current air temperature). A reading of 100 percent relative humidity means that the air is totally saturated with water vapor and cannot hold any more, creating the possibility of rain. This doesn't mean that the relative humidity must be 100 percent in order for it to rain -- it must be 100 percent where the clouds are forming, but the relative humidity near the ground could be much less.
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