Explanation:

Box 1: Deleted seven years after they were created.
From the exhibit:
The retention policy applies to SharePoint sites.
Delete items that are older than 7 years based on when they were created.
Box 2: data will retained for a minimum of seven years
The longest retention period wins. If content is subject to multiple retention settings that retain content for different periods of time, the content will be retained until the end of the longest retention period for the item.
Note: Use a retention policy to assign the same retention settings for content at a site or mailbox level, and use a retention label to assign retention settings at an item level (folder, document, email).
For example, if all documents in a SharePoint site should be retained for 5 years, it's more efficient to do this with a retention policy than apply the same retention label to all documents in that site. However, if some documents in that site should be retained for 5 years and others retained for 10 years, a retention policy wouldn't be able to do this. When you need to specify retention settings at the item level, use retention labels.
Reference:
https://learn.microsoft.com/en-us/microsoft-365/compliance/retention

Explanation: