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The read tip in the lower right is the top of the pen resting in the silo for storage. The red dot on the ThinkPad logo is an LED that indicates when the tablet is turned on.
This $100 option turns the tablet into a full laptop, with a keyboard that is ThinkPad through and through.
The keyboard on the right is as good as many laptops, and the frame on the left is where the tablet plugs in for use in laptop mode.