Yes. Great explanations. Quilt patterns usually show the block/unit sizes in finished and unfinished sizes. With the unfinished sized being the size of the block or unit before being sewn in the quilt and the finished size being the size of the block or unit after being sewn in the quilt.
So in your example - the Thangles unfinished size is 1.75 inch and the finished size will be 1.25 inch once sewn in the quilt. Difference being the seam allowance.