Final answer:
Phospholipase C (PLC) cleaves PIP₂ into DAG and IP3. DAG activates PKC, while IP3 triggers the release of calcium ions.
Step-by-step explanation:
Phospholipase C (PLC) cleaves PIP₂ to form diacylglycerol (DAG) and inositol triphosphate (IP3). These products of the cleavage of PIP2 serve as second messengers. DAG remains in the plasma membrane and activates protein kinase C (PKC) while IP3 diffuses into the cytoplasm and binds to ligand-gated calcium channels in the endoplasmic reticulum to release calcium ions (Ca²+).