Rails and actuator limits are separate checked contracts. Exact arithmetic here means exact results for the stated model inputs; measured inputs still carry uncertainty and significant-figure limits.
highlighted = computed this step
The upper rail clips the command
A 7 volt command cannot exceed the 5 volt upper rail, so the actual output is 5 volts.
min(7,5)=5V
The lower rail is checked too
A command of negative 2 volts clips at the 0 volt lower rail.