The image shows a delete/update conflict:

Steps On database A On database B
Initial condition Row 4 exists Row 4 exists
The applications issue a conflicting update and delete on Row 4 simultaneously Update Row 4 Delete Row 4
The replication agent on each database sends the delete or update to the other Replicate update to database B Replicate delete to database A
Each database now has the delete or update from the other database Replication says to delete Row 4 Replication says to update Row 4