The Unflatten operation converts flat JSON objects whose keys represent nested paths into nested JSON objects and arrays. For example, flat keys such as "user.name" and "user.email" can become a nested "user" object when the period is used as the separator. Array paths are also supported, so keys containing indexes such as "items[0].name" can be reconstructed into an array of objects. The operation reads the JSON file, interprets each key as a path, and builds the corresponding nested structure.