The arrow pointing to the "LOCAL" file doesn’t make sense in the context of Git. Meld was originally designed as a file comparison tool rather than specifically for conflict resolution in version control. The files on the left and right are literally files – likely temporary files created by Git specifically for loading them into the left and right panes in Meld. The middle pane holds the "BASE" version of the file, which is the common ancestor of both changes.
The author needs to build the final version of the file in the center, using the insertions from the left (LOCAL) and right (REMOTE) panes. Modifying the LOCAL and REMOTE files themselves doesn’t make sense because they are temporary files, which will presumably be deleted after the merge process is completed.