Confusion about the notation used for the chain complex of a torus

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From Rotman's Algebraic Topology in a section talking about finitely based chain complexes; I have come across this page and am confused by some of the notation and words.

$(1)$ What is the adequate subcomplex here, are they saying the identified torus of the square is the adequate subcomplex?

$(2)$ I understand that chains in a complex $E_*$ are the elements of each $E_q$, but what does $E_2=\langle P \rangle$ mean? What does $E_1=\langle a \rangle \oplus \langle b \rangle$ mean?

$(3)$ And how do these differentiations (boundary operator) imply the bottom results?

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