What is meant by "each form field provides labels or instructions"?

This may mean that:

1. Each form field has a label:

Phone Number: (area code): (first 3 digits): (last 4 digits):


2. Or that a label is provided for a set of form fields which clearly explains the purpose of each form field:

Phone Number (XXX-XXX-XXXX):

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3. Or that instructions are provided for a set of form fields which also explain the purpose of each form field:

Please insert your phone number in the following format: area code (1st form field), first 3 digits (2nd form field), last 4 digits (3rd form field).
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