triethylamine removes an alpha proton from nitromethane to generate a nitronate population. Its carbon attacks the cyclic ketone carbonyl of E, forming a new C–CH2NO2 bond while the C=O pi pair moves onto oxygen. protonation by triethylammonium or another proton donor gives the tertiary alcohol F and regenerates base. This is a Henry reaction, also called a nitroaldol reaction: the former ketone carbon now bears both OH and CH2NO2.
The nitro group remains attached to its original nitromethane carbon; attack through oxygen would give a different connectivity. The methyl acetal and the original alcohol substituents need not be cleaved or displaced. This addition produces the isolated connectivity without requiring dehydration to a nitroalkene. The stated complex mixture is compatible with competing additions or stereoisomers, but the scheme supplies no basis for claiming F is the unique or kinetically dominant product. Only its formation is being explained.