arcmap - Reconcile and post with c#

I am trying to understand Esri example of reconciling and post with C#. Could someone give me some hints or point me in the right direction. The reconcile and post in Arcmap toolbox has edit version and target version as optional. Is a variable in this code related to a sde connection?

public void ReconcileandPost(IVersion editVersion, IVersion targetVersion)
{
   IMultiuserWorkspaceEdit muWorkspaceEdit = (IMultiuserWorkspaceEdit)editVersion;
   IWorkspaceEdit workspaceEdit = (IWorkspaceEdit2)editVersion;
   IVersionEdit4 versionEdit = (IVersionEdit4)workspaceEdit;

   if (muWorkspaceEdit.SupportsMultiuserEditSessionMode(esriMultiuserEditSessionMode.esriMESMVersioned))
   {
       muWorkspaceEdit.StartMultiuserEditing(esriMultiuserEditSessionMode.esriMESMVersioned);
               //Reconcile with the target version.

               bool conflicts = versionEdit.Reconcile4(targetVersion.VersionName, true, false, false, false);
               if (conflicts) MessageBox.Show(" Conflicts Detected ");
               else MessageBox.Show(" No Conflicts Detected ");    
           workspaceEdit.StartEditOperation();
               //Post to the target version.
               if (versionEdit.CanPost()) versionEdit.Post(targetVersion.VersionName);
           workspaceEdit.StopEditOperation(); 
        workspaceEdit.StopEditing(true);
   }
}