It's about University Challenge, a quiz game for university teams.
It's set up with an old school mortal kombat visual, the health of the quizzer (jeremy paxman) vs the health of one guy from one team. The guy is clearly a pretty knowledgeable. Quick fire questions and answers through editing, get them right = paxman loses health, wrong = guy loses life. Guy has a huge "handicap" (he deals little dmg, paxman deals loads).
MK sound effects and visuals, the MK announcer saying "combo" etc, as well as the stonking hard and nearly unintelligible questions, and him getting them right, make it funny.