Neither. N includes all the stakeholders. The text is trying to provide a simple example and likely had an overlooked typo.
Obviously the PM must communicate with the team and should be included in the conversation. Some business analysis books look at this as the team communicating among themselves, but from a PM perspective the PM is included. You should be able to draw a small diagram showing yourself and two team members and see the number of channels, then go to four and five.
Seems logical, I hope!