This is easy.
Imagine that the CPU is servicing an interrupt with level N. Then an interrupt request with level M activates. If M>N then the CPU will start processing the new interrupt, otherwise it will finish processing the first interrupt before starting to process the next. That's how levels work. Level 7 is special, the above doesn't apply to it.
Now imagine that there are several pending interrupt requests with the same level. That's where priorities come in. The one with the highest priority will be serviced first, others will wait. Then if a new interrupt request activates with the same level and a higher priority, it will still wait. Unlike levels, priorities do not preempt each other.
EPORT is special: it has a 'fixed midpoint priority' between 3 and 4. You can think of it as having priority 3.5. The interrupt level is still configurable, though.