This is a high-power dual deployment rocket, which means it releases 2 parachutes - 1 small parachute at the peak of its flight, and a much bigger parrachute near the bottom of its descent, at around 300-500 feet. This is done to prevent the rocket from drifting far because of the wind:
In order to accomplish this, this rocket has 2 compartments, one for the smaller drogue parachute, and one for the larger main parachute:
In between the two parachute compartments is the electronics bay (e-bay), which holds the dual-deployment altimiter needed to make this work:
This is in between the two parachute compartments. It houses the altimiter, batter, and igniters needed to make this system work. There are holes because the altimiter determines altitude by measuring changes in atmospheric pressure.
This barometric altimeter measures altitude based on air pressure (which is why the electronics bay has holes in it). It can sense when the rocket has reached its peak, so when it senses that, it sets off a charge in the drogue chute compartment, which ejects the drogue chute. Then, when it senses that the rocket has reached a predetermined altitude, like 500ft, it sets off another charge in the compartment for the main chute, which releases the main chute.
This outside part is the same on both sides, for the drogue and main parachutes. On the right is the container that holds that parachute ejection charge. On the left is an electronic connector which connects to the altimiter and to which an igniter will be attached. This allows the altimeter to set off the igniter at the correct time, which will in turn set off the ejection charge and release the parachute.