Microprocessor
The control flags in 8086 are:

 the direction flag(DF).
All of these
 the Trap flag(TF).
 the interrupt flag(IF).

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Microprocessor
A high on RESET OUT signifies that

 all the registers of the CPU are being reset
 all the registers and counters are being reset
 all the registers and counters are being reset and this signal can be used to reset external support chip
 processing can begin when this signal goes high

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