a) The current dictionary is replaced by its extension. The extension contains the name of the function being defined, together with a temporary Void-value.

b) Then a new function is created as a 4-tuple: the name of the function, the formal arguments, the body expression and the current dictionary (= the dictionary of function-definition). The dictionary is needed because Pico implements lexical scoping. Hence, the 'current dictionary' (i.e. dictionary of definition) will be needed when evaluating the body of the function (which happens when calling it)

c) Now the Void value in the dictionary is replaced by the function which was just created.

Why: The trick with Void is needed because we are defining a recursive structure: the function needs the environment of definition. But this environment of definition must contain the function itself because we might want to call the function recursively. If you understand this, try to think back and understand the difference between let and letrec in Scheme.