It means...
When you apply two equal tone to the input of a device (amplifer,mixer etc.) the output will have the main carriers (tones) and their combinations due to nonlinear effect of the device.( see math. background of nonlinearity)
So,
fundFreq={1,0}=F1*1+F2*0=F1 or can be {0,1}=F1*0+F2*1=F2
Similarly
imFreq={2,-1}=F1*2-F1*1=2F2-F1 or can be such combinations {1,-2} so on..
This measurement block computes the harmonic power at those frequecies with load voltage over a load impedance (can be complex Z=x+-j*y) and IP3 equation that is
OIP3=P1+(P1-P{2,-1})/2
And this is valid only and only the main tone power level is at least 20dB lower than P1dB compression level.
is it clear ?