Confused about the for loop in the Set Covering Problem (Greedy Algorithms)

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This is my first time learning data structure and algorithms. I am stuck in the Grokking Algorithm Chapter 8 Greedy Algorithms, where there is a simple Set Covering Problem given to the readers.

Is there a simpler example of source code which I can refer to understand the concept behind this example?

Can somebody explain how set intersection helps to get the ultimate result of {'k4', 'k5'} in plain English? How is the array of states_needed passed in to a hash and gets converted to a set?

states_needed = set(["a", "b", "c", "d", "e", "f", "g", "h"])

stations = {}

stations["k1"] = set(["a", "b", "c"])
stations["k2"] = set(["c", "d", "e"])
stations["k3"] = set(["f", "g", "h"])
stations["k4"] = set(["a", "b", "c", "d"])
stations["k5"] = set(["e", "f", "g", "h"])

final_stations = set()

while states_needed:
  best_station = None
  states_not_covered = set()
  
  for station, states_for_station in stations.items():
    covered = states_needed & states_for_station
    if len(covered) > len(states_not_covered):
      best_station = station
      states_not_covered = covered

  states_needed -= states_not_covered
  final_stations.add(best_station)

print(final_stations)
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