Hi paulmdrdo!
Looks like some context is missing.
This looks like an explanation on how to count elements in the union of 3 sets A, B, and C.
Btw, the notation |A| means the number of elements in A (also called the cardinality of A).
The formula for that is:
$$|A\cup B \cup C| = |A|+|B|+|C|- \Big( |A \cap B|+|A \cap C| +|B \cap C| \Big)+|A \cap B \cap C|$$
In words: the total number of elements in the union is the sum of the elements in each set minus the elements in the mutual intersections plus the elements in the 3-way intersection.I believe the rightmost drawing represents the actual situation.
That is, we have 3 sets A, B, and C that each have 4 elements, such that each of the different types of intersections contain 1 element.
The total number of elements in the union is 7.
The leftmost drawing shows what you would count if you calculate |A|+|B|+|C|.
In that case each element in the intersections is counted twice, hence the 2 in the overlaps.
Except for the part where all 3 sets intersect where each element is counted thrice, hence the 3 in the middle.
The middle drawing represents what you get with only the part of the formula that is given below it.
The rightmost drawing is putting everything together, effectively showing the original situation.