CompiledObjects are imported in compiled state. This is the recommended way of importing objects.
Text MergeYour compare tool will open when you import the transport with the objects in text format and let you merge the changes.
The left side is the source code of the transport, the right side the source code of the objects present in your customer database.
Three Way Text MergeSame as the Text Merge mode but the merge tool will show you three versions of the objects.
Left the source code as it was before you start working on the projects.
In the middle the source code of the objects present in your customer database.
On the right the source code with the modifications.