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Radio buttons, also known as radio button groups, allow users to select one value from multiple options. In this tutorial, the presenter demonstrates using radio buttons in a reactive web application. They start by creating two entities: one for issue management with attributes like title, description, and important date/time, and another static entity for issue priority, with fixed values of high, medium, and low. The tutorial explains that static entities can be used for drop-down or radio button values that don’t change often. Lastly, the presenter connects the priority entity to the issue entity to create a foreign key relationship, integrating the two entities in the application.