Dinky 24VAC 1-phase control transformers are typically fed 120VAC -- regular way.
On their (typically unfused) secondary side one wire is normally 'anchored' to ground whenever a floating neutral must be shunned. (It's not at all unusual for these circuits to 'float' -- not being grounded at all. Think sprinkler controls, door bells, etc.)
The other lead will then become the 24VAC 'hot.'
The pigtail implied in Section B can be landed upon any chassis that is also bonded back to the panel. The amount of current is tiny -- and at a very low voltage, too.
The gadget (Nordic Electronics Fast Stat) is plainly designed to get around old work limitations -- particularly those homes that started life with mere two wire control connections from the thermostat to the furnace.
So one drops in what is best described as a digital multi-plexer and de-multi-plexer pairing. As is typical in digital systems, a floating neutral/ground basis is undesirable, hence the grounding pigtail.
