A very Basic Way of Interfacing a LM35 Temperature Sensor to an Arduino.

The Basic Test Code to show the Values in Serial Monitor is Given Here:

float tempC;
int tempPin = 0;

void setup()
{
  Serial.begin(9600); //opens serial port, sets data rate to 9600 bps
}

void loop()
{
  tempC = analogRead(tempPin);           //read the value from the sensor
  tempC = (5.0 * tempC * 100.0) / 1024.0; //convert the analog data to temperature
  Serial.print((byte)tempC);             //send the data to the computer
  delay(1000);                           //wait one second before sending new data
}

Another Way Of Reading The Temperature,, but in this case the Resulution has Been Improved:

float tempC;
int reading;
int tempPin = 0;

void setup()
{
  analogReference(INTERNAL);
  Serial.begin(9600); //opens serial port, sets data rate to 9600 bps
}

void loop()
{
  reading = analogRead(tempPin);
  tempC = reading / 9.31;
  Serial.print((byte)tempC);//send the data to the computer
  Serial.print(" C");
  Serial.println();
  delay(1000);                           //wait one second before sending new data
}