I am trying to figure out how the linkage between attribute and attribute options, and product and attributes are made in Magento. Is there any reference to how this is work
As Alan Storm says: "you do not have to know about how your db works. You have to learn how the models work ". (This is not an exact quote. I gave you the meaning).
But I created own scheme to understand the DB structure. So this screen shows how it works:

Hope, it helps.
Also I recommend you to look through these links:
http://www.magentocommerce.com/wiki/2_-_magento_concepts_and_architecture/magento_database_diagram
http://alanstorm.com/magento_advanced_orm_entity_attribute_value_part_1