How the Refund transaction in Asymmetric Revocable Commitments constructed?

In "mastering bitcoin" book chapter 14 there is a section about Asymmetric Revocable Commitments that mention the need of refund transaction.

I don't understand how this refund transaction constructed:

  1. Does the refund transaction has a timelock?
  2. It states "the first set of commitments (called the refund) that assigns the initial balance of 5 bitcoin for Hitesh and 5 bitcoin for Irene" does it mean that the two first examples of transaction in this section are the refund transaction?

Output 0 <5 bitcoins>:
    <Irene's Public Key> CHECKSIG

Output 1 <5 bitcoins>:
    <1000 blocks>
    CHECKSEQUENCEVERIFY
    DROP
    <Hitesh's Public Key> CHECKSIG

and

Input: 2-of-2 funding output, signed by Hitesh

Output 0 <5 bitcoins>:
    <Hitesh's Public Key> CHECKSIG

Output 1 <5 bitcoins>:
    <1000 blocks>
    CHECKSEQUENCEVERIFY
    DROP
    <Irene's Public Key> CHECKSIG
  1. What is the role of the third example:
    <Irene's Public Key> CHECKSIG

Output 1 <5 bitcoins>:
IF
    # Revocation penalty output
    <Revocation Public Key>
ELSE
    <1000 blocks>
    CHECKSEQUENCEVERIFY
    DROP
    <Hitesh's Public Key>
ENDIF
CHECKSIG


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