Does Average Response Time calculated by Controller includes Network Delay Time ?

In the LoadRunner Controller there is a Network Delay Time Graph in Network Graphs. I have set the measurement from localhost to server under test.

The average response time as show in Trans Response Graph is 2.3 secs

The Network delay time graphs shows an average delay of 2.75 secs

Is this data consistent. Does Response time include network delay time also ?

Please explain What is response time in Loadrunner ?