The discussion centers around understanding the variables in the equation for diffraction gratings, specifically λ=xd/nl. Participants clarify that d represents the distance between lines on the grating, which is 4.35*10^-6 meters, and n is the order of the line, set at 1. The value of x is calculated based on the number of lines (27) and the distance from the central maximum to the yellow mark, resulting in x being 0.135 meters. The conversation emphasizes that the physical distance measured does not depend on the type of ruler used, as long as the correct spacing of the lines is applied. Overall, the key focus is on correctly interpreting the variables and their units in the context of the diffraction grating formula.