I was looking at this work page 31. It is talking about the Wu and Manber 1992 updated Bitap algorithm for Fuzzy search with Non-deterministic Automata. To be more precise this formula:

Let's also look at this NFA graph which is used for finding words that are of distance 2 by Levenstein away from the word "survey":
As per my understanding the formula is used for each state. NFA graph tells us we approve 2 errors, which means we should calculate $R_{0}$, $R_{1}$ and $R_{2}$.
However how would we calculate this example:
Text = "surprise"
Pattern = "rise"
Then the Bitmask is:
B["r"] = 1000
B["i"] = 0100
B["s"] = 0010
B["e"] = 0010
B[*] = 0000 where * stands for any other character
Okey for 0 errors we will get 0001 on the last letter as we only use $R'_{0}$. But anything that contains more than 0 errors gets me confused. Does the i value stands for index in text or for how many errors we approve.
I also found this Russian article which states that:

k is number of errors, j is character index and $s_{x}$ is Bitmask. However the previous article stated that i are states of the NFA. Can you please explain how would the formula work for 1 error or 2, it is so confusing.