You are confused about the line "test11.py first 2nd 3rd" Your code should match exactly to what he lists in the text:
from sys import argv
script, first, second, third = argv
print "The script is called:", script
print "Your first variable is:", first
print "Your second variable is:", second
print "Your third variable is:", third
Notice that you have an extra line that you should remove?
What you may not understand is what a program is and how they are executed? In mouse environments, you don't realize what is happening when you click a button to start up a program it just happens. But in the old days and for people who enjoy text interaction (very powerful once you learn to use it, look into linux and unix environments for more examples), many programs are started by typing their name! Where do you type their name? Well, in a terminal in linux or the command prompt in windows. Then, you can add different parameters and mix programs to do very interesting things. I haven't used windows for a long time, but I believe the following directions will get you on the right track.
1. Remove the line you shouldn't have in your Python script and save.
2. Open a command prompt. Try the start button and typing in cmd or Google the answer.
3. Navigate to where you want to run the program you wrote. Try typing the following: cd "E:\f\mohamed\New folder (5)"
I got that directory from your screenshot by the way.
4. Execute your program, but with extra parameters (these allow the program to adapt to do different things). Type the following: python test11.py first 2nd 3rd
5. Your program should output this:
The script is called: test11.py
Your first variable is: first
Your second variable is: 2nd
Your third variable is: 3rd
Interesting tidbit: You are actually running the program called "python" and "test11.py" tells the program to run the code you wrote! Python then passes the rest of the arguments (first, 2nd, 3rd) to the code you wrote.
When you use and IDE to run stuff it runs the python program in the background and outputs the results to you.