The fourth rule should also be fairly self-evident: since what a lambda term such as `\x.y` does it throw away its first argument and return `y`, that's exactly what the combinatory logic translation should do. And indeed, `Ky` is a function that throws away its argument and returns `y`.
The fifth rule deals with an abstract whose body is an application: the `S` combinator takes its next argument (which will fill the role of the original variable a) and copies it, feeding one copy to the translation of \a.M, and the other copy to the translation of \a.N. This ensures that any free occurrences of a inside M or N will end up taking on the appropriate value. Finally, the last rule says that if the body of an abstract is itself an abstract, translate the inner abstract first, and then do the outermost. (Since the translation of [\b.M] will not have any lambdas in it, we can be sure that we won't end up applying rule 6 again in an infinite loop.)
The fourth rule should also be fairly self-evident: since what a lambda term such as `\x.y` does it throw away its first argument and return `y`, that's exactly what the combinatory logic translation should do. And indeed, `Ky` is a function that throws away its argument and returns `y`.
The fifth rule deals with an abstract whose body is an application: the `S` combinator takes its next argument (which will fill the role of the original variable a) and copies it, feeding one copy to the translation of \a.M, and the other copy to the translation of \a.N. This ensures that any free occurrences of a inside M or N will end up taking on the appropriate value. Finally, the last rule says that if the body of an abstract is itself an abstract, translate the inner abstract first, and then do the outermost. (Since the translation of [\b.M] will not have any lambdas in it, we can be sure that we won't end up applying rule 6 again in an infinite loop.)