In this case the tag AUTO is ignored. To the left of this text is listed the generate format input file used here to explain multi-part shapes. The tag END marks the end of continuous line segments. Lines can consist of many separate segments that together make up a line feature. Such segments are called parts.
Polygons can consist of many separate polygons.
Also one or more of these polygons may have holes in them. These holes are called island polygons. All separate polygons or rings are called parts, just like the line segments are. The first is the outer polygon and the second is an island polygon. It's list is not discussed here.