What happens if I assign a negative value to an unsigned variable?

For the official answer - Section 4.7 conv.integral

"If the destination type is unsigned, the resulting value is the least unsigned integer congruent to the source integer (modulo 2ⁿ where n is the number of bits used to represent the unsigned type). [ Note: In a two’s complement representation, this conversion is conceptual and there is no change in the bit pattern (if there is no truncation). —end note ]

This essentially means that if the underlying architecture stores in a method that is not Two's Complement (like Signed Magnitude, or One's Complement), that the conversion to unsigned must behave as if it was Two's Complement.

It will assign the bit pattern representing -5 (in 2's complement) to the unsigned int. Which will be a large unsigned value. For 32 bit ints this will be 2^32 - 5 or 4294967291

You're right, the signed integer is stored in 2's complement form, and the unsigned integer is stored in the unsigned binary representation. C (and C++) doesn't distinguish between the two, so the value you end up with is simply the unsigned binary value of the 2's complement binary representation.