I think you understand it ok. I'll put it in my words too:
Ok, assuming all bits are false, we will be waiting for the input to go true. So....
1. #Input goes true. The RLO after the FP Membit is true for one scan.
2. The #Out bit is XORed with the RLO. The conditions are true, so "= #Out" is true.
3. On the next scan, we can assume that #Input is still true (probably a Push Button), but it doesn't matter because the RLO after the FP Membit is now false #Out is true, so the XOR condition is still true.
4. If the button is released, nothing changes.
5. Someone pushes the button again, the RLO after FP Membit is true, and the XOR condition is no longer true. #Out is set to false, and needs another rising edge at the input to set it again.