Meaning of IQ remote and local (remote_pct and local_pct) in CS code (Does reflector actually match phase with Initiator?)

In the cs_de.c, we have an IQ pair extracted from remote_pct and local_pct.

Assuming this code runs on initiator (where the ranging is done), and remote/local stands for reflector and initiator,
1) Is the remote IQ measured at reflector and sent in some other data packet towards initiator

OR

2)The reflector actually matches its response to exactly phase align with the tone received from initiator. 
(Acting as a true reflector)

The two IQ complex numbers are multiplied to extract phase for ranging.

How is remote_pct and local_pct measured and calculated?

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