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Title= is for the nature of a link. It describes the link you are linking to. IE: It's the title/anchor text for an image.
It can also be used to describe a linked picture, if the picture is about the linked page. This way text around the image + the link + the relevant page match. However, I have seen no proof that this works for any SEO value.
alt: Describes the exact picture that is being displayed. Not the linked page.
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