Hi pritampatil,
Actually both, in the LPUART1_recieve_and_echo_char() function you could see following:
Your entered character is saved to the send variable and on the terminal is nothing to see.
1. char send = LPUART1_receive_char(); /* Receive Char */
After that, using the below function is transmitted the character back to the terminal and you can see the character like on your picture above.
2. LPUART1_transmit_char(send); /* Transmit same char back to the sender */
So, this process it can be named echo => The received character is just transmitted (sent back) to the sender.
You could look at the below figures in the reference manual, the diagrams show you how LPUART works.
Figure 51-1. LPUART transmitter block diagram and Figure 51-2. LPUART receiver block diagram.
Also, you can debug the code for better understanding how it works.
I hope it helps you.
If it is not clear, let me know.
Best regards,
Diana