The compass needle shown in the figure 6 indicate the polarity of the iron nail. The arrow of the compass points to the North pole of the iron nail.
In the figure, you can observe that the red arrow points to the pointed end of the nail. This only means that the North Pole of the iron nail is at the pointed end while the South Pole of the iron nail is the flattened part of the iron nail.
The compass uses magnetic needle.The red arrow of the needle indicates that it will point to the North Pole of the magnet. This is due to magnetic attraction. One should remember that the red arrow is actually the south pole of the needle. Since it is the South Pole of the compass, it will be attracted to the North pole of another magnet. Hence it will point where is the North Pole of the other magnet. This is the reason we can conclude the location of the two poles in the nail.
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