Merge keeps the original timeline. Your commits go in along with anything else that happened relative to the branch you based your work off (probably main). This generates a merge commit.
Rebase will replay all the commits that happened while you were doing your work before your commits happen, and then put yours at the HEAD, so that they are the most recent commits. You have to mitigate any conflicts that impact the same files as these commits are replayed, if any conflicts arise. These are resolved the same way any merge conflict is. There is no frivolous merge commit in this scenario.
TlDR; End result, everything that happened to the branch minus your work, happens. Then your stuff happens after. Much tidy and clean.