How does this UPDATE update multiple rows?

For the UPDATE in the following script, what values are selected to update Table2? For example, for a row in Table2 (ie. 'NY') there are several rows in Table1 that can be used for the update.

Thanks.

create table Table1
(
	Col1 varchar(10),
	Col2 varchar(10),
	Col3 varchar(10)
)
Insert into Table1
select 'FL', 2, 2
union
select 'FL', 2, 2
union
select 'FL', 2, 5
union
select 'FL', 2, 3
union
select 'NY', 2, 2
union
select 'NY', 1, 3
union
select 'NY', 2, 2
union
select 'NY', 2, 3
union
select 'CA', 3, 2
union
select 'CA', 5, 1
union
select 'CA', 4, 2
union
select 'CA', 2, 3

create table Table2
(
	Col1 varchar(10),
	Col2 varchar(10),
	Col3 varchar(10),
	Ignore varchar(10)
)
Insert into Table2 (Col1, Ignore)
select 'FL', 1
union
select 'FL', 2
union
select 'FL', 3
union
select 'FL', 4
union
select 'NY', 5
union
select 'NY', 6
union
select 'NY', 7
union
select 'NY', 8
union
select 'CA', 9
union
select 'CA', 10
union
select 'CA', 11
union
select 'CA', 12

update T2
set Col2 = T1.Col2,
Col3 = T1.Col3
from Table1 T1 inner join Table2 T2
on T1.Col1 = T2.Col1


select col1, col2, col3 from Table1
select col1, col2, col3 from table2

VM