Start here. This is the direct spoken answer to practice first.
Why this question matters
Data modeling questions reveal whether a candidate sees the database as part of the domain model, not just a place where objects are stored.
Normalization means structuring tables so each fact is stored in one clear place and relationships are represented with keys. It reduces duplication and makes updates safer. Denormalization means storing some repeated or precomputed data to make reads simpler or faster. I would start normalized for correctness, then denormalize only for a concrete read pattern or performance problem.