Mass Transfer
If a two phase system is in physical equilibrium; then it means that, the

All of these
Total pressure throughout the liquid phase is equal to that throughout the vapor phase
Temperature of the liquid phase is equal to that of the vapor phase
Escaping tendency of each component from the liquid phase to the vapor phase is exactly equal to that from vapor phase to liquid phase

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Mass Transfer
In case of steam distillation, the steam leaving the liquid is not completely saturated with distillate vapour, because

Temperature is less
Total pressure is less
Saturated steam is used for steam distillation
Mixing of steam with the material being vaporised is not so intimate as to result in equilibrium condition

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