The version we use has three stages. First you explore an idea by doing hands-on activities, uncluttered by vocabulary and such. Second, you explain the concept, connecting it to the hands-on experiences the kids just did. Of course the kids don't understand the concept at this point, so they need to apply the concept in new, hands-on situations. In explaining the Learning Cycle, address the fact that most instruction, at all levels, omits the explore phase.
Most teachers start with explain and then let the kids confirm that what was explained is true.
The explore was the demo, the pictures and paragraph, and the questions. The explain was all the stuff about constructing knowledge and the Learning Cycle. The apply phase is seeing how this approach works with new activities. Well, sure I see that. We just saw it happen.