There are THREE capacitors in this circuit. The one on the +5 pin filters the power supply; the other two are single-pole RC low-pass filters. Do you have a more specific question?
You should be aware that in the real world, unlike the above simulation environment, there are high frequency artifacts present in the electrical network (presumably from where your input signal comes from), most of them due to switching transients in the electrical grid and/or electric motors.
You should be aware that in the real world, unlike the above simulation environment, there are high frequency artifacts present in the electrical network (presumably from where your input signal comes from), most of them due to switching transients in the electrical grid and/or electric motors.
If you try to build this thing on a breadboard, you will realize you will need more than 3 capacitors as in this picture. Because of having high reactence in low frequencies, they filter high frequency components, which you may see as ripples on your supply line.