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The handle probably operates the pan and tilt operations, and the head rotates through 90 degrees for vertical shots. The QR plate screws into the tripod socket on the base of the camera, then clips to the tripod head.
I have the same tripod, and the screw shown in the photo you posted is to lock down the rotation of the tripod's head, i.e., what a video camera uses to pan (horizontally) across a scene. The large knob is used for the same in the vertical direction (up and down motion).