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In Magento Devdocs for setting up cron it is recommended to schedule 3 seperate scripts

* * * * * <path to php binary> <magento install dir>/bin/magento cron:run | grep -v "Ran jobs by schedule" >> <magento install dir>/var/log/magento.cron.log
* * * * * <path to php binary> <magento install dir>/update/cron.php >> <magento install dir>/var/log/update.cron.log
* * * * * <path to php binary> <magento install dir>/bin/magento setup:cron:run >> <magento install dir>/var/log/setup.cron.log

I am trying to understand what is the role of each of these scripts scheduled.

I am sorry if this a duplicate question or a stupid question, but i could not find anything relating to this

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The Magento devdocs now includes a short description:

The first command (magento cron:run) reindexes indexers, sends automated e-mails, generates the sitemap, and so on. Usually it’s associated with the PHP command line .ini file. The other two commands are used by the Component Manager and System Upgrade.

http://devdocs.magento.com/guides/v2.0/config-guide/cli/config-cli-subcommands-cron.html

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