Understanding the transclude option of directive definition?

Question

I think this is one of the hardest concept for me to understand with angularjs\'s directive.

The document from http://docs.angularjs.org/guide/directive says:

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Answer 1

transclude:true mean to add all element that is defined in your directive with template element of your directive.

if transclude:false the these elements are not included in your final html of directive only template of directive is rendered.

transclude:element mean your directive template is not used only element defined in your directive are rendered as html.

when you define your directive then it should be restrict to E and when you add it on page then

 is like 
gratitude
what i am talking about.