Removing Elements From ArrayList

Referring Code 1, the book says line 16 of the code removes the element "Three" but line 17 does not remove the element "Four" because of Statement 1. The question is does remove(Object o) method invoke the == or the equals method because statement 1 and 2 seem to be in conflict

Statement 1:

Two objects are equal if their object references point to the same object. (which is nothing but definition of ==)

Statement 2:

The author refers to Statement 1 and says "As mentioned earlier, the method remove compares the objects for equality before removing it from ArrayList by calling method equals."

Java Code:

import java.util.ArrayList;
public class DeleteElementsFromArrayList {
public static void main(String args[]) {
ArrayList<StringBuilder> myArrList = new ArrayList<>();
StringBuilder sb1 = new StringBuilder("One");

[Code] ....