"The magnitude of displacement may or may not be equal to the path length traversed by an object." Explain this statement with an example.

For motion of the car from $O$ to $P$, the path length is $360 \text{ m}$ and the displacement is $360 \text{ m}$.
In this case, the magnitude of displacement is equal to the path length.
Consider the motion of the car from $O$ to $P$ and back to $Q$. In this case, the path length is the total distance covered: $360 \text{ m} + 120 \text{ m} = 480 \text{ m}$.
The displacement is the change in position: $240 \text{ m} - 0 \text{ m} = 240 \text{ m}$.
Thus, the magnitude of displacement $(240 \text{ m})$ is not equal to the path length $(480 \text{ m})$.