Top left is the number. The three cards on the right show it rounded to the thousands: rounded up at the top, to the nearest in the middle, rounded down at the bottom. The card bottom left picks out the hundreds digit. Changing the number updates all four cards.
Rounding to the nearest picks the closer one
34,567 lies between 34,000 and 35,000. Rounded to the thousands, those are the only two candidates.
Rounding down always takes the lower one, 34,000. Rounding up always takes the higher one, 35,000. Rounding to the nearest takes whichever is closer.
Halfway between the two is 34,500. 34,567 is above halfway, so 35,000 is closer, and that is the result.
The digit that decides is one place below
Which one is closer can be read off the digit just below the place you keep. Rounding to the nearest thousand, that is the hundreds digit.
In 34,567 the hundreds digit is 5 (bottom left on Board 1). A hundreds digit of 5 or more means the number is at least 34,500, so it goes up to 35,000. A digit of 4 or less means it is below halfway and goes down to 34,000. The tens and ones make no difference.
The formula in that card uses rem, the remainder of a division, and quot, the whole-number quotient. rem(Number, 1000) takes the last three digits, 567, and dividing that by 100 leaves the hundreds digit, 5.
A number exactly halfway, like 34,500, goes up to 35,000. That is the usual school rule ("round half up"). Some standards and programming languages instead send exact halves to the even neighbour ("round half to even", also called banker's rounding). The board's roundto rounds halves up.
The place you round to changes the result
The same number rounds differently depending on how many places you keep. Board 2 rounds 34,567 to several places.