Problem 1.3.2 in Guillemin and Pollack.

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The question and its answer is given below:

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But I could not understand 1- why he defined $\psi(\tilde{U}) = U$? I know that the importance of $\tilde{U}$ to adjust the dimension.

2-why $\psi ^{-1}= (x_{1}, x_{2}, ....., x_{k})$?

3- and why all of this leads to that $Z \cap U$ equal the required?

Could anyone explain this for me please?