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Radio buttons allow users to select one option from a set. In this tutorial, the focus is on creating a reactive web application for issue management using a service studio. The application includes two entities: "Issue," with attributes like title, description, and date/time, and a static entity for "Priority," which will have values such as high, medium, and low. Static entities can be used for drop-down and radio button values that don't change frequently. The tutorial demonstrates how to establish a relationship by connecting the priority entity to the issue entity, creating a foreign key in the issue entity for prioritizing issues.