What should an undergraduate thesis be about?

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I'm very excited to start my undergraduate thesis and I've heard some recommendations for topic but I have a questions and I'd like to hear your opinions.

Should I look for the most advanced topic I can understand on an area I'm interested to work in graduate school or should I work on an elementary topic with the things I've learned so far, or something else?

Also, what should be the point on a undergraduate thesis, should I use it to work on the topics I'm interested to study in graduate school or to go deeper in topics I know or what?

Thanks in advance.