Final answer:
The hardware that interprets and executes software instructions and coordinates other hardware is the CPU, which is the brain of the computer system.
Step-by-step explanation:
The term that represents the actual hardware that interprets and executes software instructions and coordinates how all the other hardware devices work together is the Central Processing Unit (CPU). This component is known as the brain of the computer. It performs all the main functions of a computer system by running the operating system and applications, performing complex calculations, and processing data. The CPU manages all other hardware through a system of circuits and is measured in terms of processing speed, which is where terms like MHz (megahertz) and GHz (gigahertz) come into play, representing millions and billions of cycles per second, respectively.