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In this video tutorial, the instructor explains how to use radio buttons, also known as radio button groups, to allow users to select one value from multiple options. The demonstration takes place in a service studio within a reactive web application. The tutorial involves creating entities for an issue management application, including an "Issue" entity with attributes like title, description, and date/time, as well as a static entity for issue priority (high, medium, low). The relationship between these entities is established by connecting the priority static entity to the issue entity, creating a foreign key in the issue entity for priority selection.