UTF-8 question.

I'm new to PostgreSQL, and from the looks of it, it's a great database,
and I'll be using more of it in the future.

I had a quick question if anyone could clear this up. The documentation
for PostgreSQL (version 7.1, the version this server is using) says that
it supports multibyte character encodings like Unicode (which implies
UTF-16 encoding). Later on, the same page says that Unicode is
represented using UTF-8 encoding. UTF-8 is the 8-bit version of Unicode.
The multibyte version of Unicode is UTF-16.

So, which is it? If I create a database using Unicode as the encoding,
will the encoding be UTF-8 (singlebyte) or UTF-16 (multibyte)?

Thanks!
Rich