
Explanation:
Box1: Create a Storage Sync Service
The deployment of Azure File Sync starts with placing a Storage Sync Service resource into a resource group of your selected subscription.
Box2: Create a Sync Group
A sync group defines the sync topology for a set of files. Endpoints within a sync group are kept in sync with each other. A sync group must contain one cloud endpoint, which represents an Azure file share and one or more server endpoints. A server endpoint represents a path on a registered server. A server can have server endpoints in multiple sync groups. You can create as many sync groups as you need to appropriately describe your desired sync topology.
Reference:
https://docs.microsoft.com/en-us/azure/storage/files/storage-sync-files-deployment-guide