Here the first 3 rules are those of STLC. The magic happens in [Gen] and [Inst]: namely, you can generalize free type variables. If you have a function that works on lists of elements of type t when there is no constraint on t, they can work on any lists of any type. This brings quantification to the type system, ie you go from:
∀ a. reverse : α list → α list
to reverse : ∀ α. α list → α list
(in the first one, ∀ is part of the discourse, and in the second one, part of the type). [Inst] states that you can replace a quantified variable by any variable. This is the role of the ⊑ operator, which is unfortunately not explained in this notation. This is confusing for people not used to type systems, ie most people).Technically, [Let] is redundant because it is a combination of [App]+[Abs] : let x = e1 in e2 is equivalent to (λx.e2) e1. There is a difference in the ML branch of languages (as opposed to the Haskell branch) because in the presence of memory references (mutable cells) you can't generalize everywhere, so only let-bound variables are given a type scheme σ (both in the let...in construct and in toplevel phrases). That's why there is usually an explicit generalisation step at this point. Or maybe I have overlooked this particular presentation. HTH