It's Peter and Gordon pretending to be singing and playing — and not trying very hard to look like they're not just miming to their record of "Lady Godiva." As you'll see, they're introduced by Milton Berle on his 1966 series on ABC and I half-expected to see him riding a horse naked through the scene at some point. Uncle Miltie never liked it when the camera was on someone else.
This song was a respectable hit back in 1966, which is more than you could say for the 1966 Milton Berle Show. Since Berle's famous variety show on NBC had gone off the air in '56, he'd been lusting and campaigning to bring it back. Alas, he'd signed a "lifetime contract" (sort of) with that network and since they didn't want to bring it back, it didn't come back. He finally negotiated a downgrade of his exclusivity to NBC and did this series for ABC. It lasted one year and thereafter, "Mr. Television" never hosted his own TV show again…