Watch the Pedal Steel: Rhythm 2 online guitar lesson by Joe Dalton from Big Twang
The second chorus illustrates fills instead of a rhythm part. In country ballads, there is a lot room for fills or instrumental response to the vocal. There is an art to backing up a singer. First the fill must be placed properly in the timing of the music. Secondly, it must compliment the melody. It's easy to play something inappropriate. You must also get out of the way in time and avoid starting on the note the singer ended on and landing on the note the singer will then start with. It takes time.
The third chorus uses harmonics. Sometimes the steel players call these "chimes".
If I fret a note at the eighth fret, I touch the same string twelve frets higher to get the harmonic. Then I pick behind to get the harmonic. Sometimes I pick the harmonic and then bend it. You can also do this with an open string by bending behind the nut.