The image shows this update conflict:

Steps On Database A On Database B
Initial condition. X is 1. X is 1.
The application on each database updates X simultaneously. Set X=2. Set X=100.
The replication agent on each database sends its update to the other database. Replicate X to Database B Replicate X to Database A.
Each database now has the other's update. Replication says to set X=100. Replication says to set X=2.

End of description.