{0} and {1} are parameters to the string.Format format string, which are replaced by the first and second parameters following the format string when constructing a new string: in this case, by "group.Key" and "group.Count()" respectively. The '[' and ']' characters are just literal characters copied directly to the output string - as you can see in your print. There are 4 "Europe" items.
"group" is the name given to each item in the enumerable list returned by the GroupBy Linq extension method.
Think of it as:
foreach (var group in GroupBy(name => name))
{
Select(string.Format("{0} [{1}]",group.Key , group.Count()));
}
It isn't done like that, and that wouldn't compile anyway, but it gives you an idea what is going on.