user1 on host03 type ls /home/user1, a directory that is local on the NFS server, homespace.
This ls command asks the kernel for the content of /home/user1.
The kernel on host03 recognizes that /home/user1 actually is located on homespace and sends a request for the directory contents there. Red Hat Reference homespace receives the request, processes it, and sends the contents of the directory back to host03. The kernel on host03 gives the data to the ls command, which in turn displays the directory contents on users 1's screen.