Motherboard Wifi
It means it has a wireless card on the motherboard.
There's antenna connectors on the IO shield, and you have one or two small antennas in the box which you connect to those connectors on the IO shield.
Then yes, once you install the drivers (available on the Asus website for that motherboard model), you will be able to connect to the router wirelessly.
Drivers are here: https://www.asus.com/Motherboards-Components/Motherboards/PRIME/PRIME-B550M-A-WI-FI/HelpDesk_Download/
edit
It's just like the wireless in laptops, but laptops hide the antennas either on the back of the LCD screen, or on the bottom or edges of the motherboard.
Because the computer cases are supposed to be like faraday cages (to block electric "noise" from affecting other devices in your house like radios, walkie talkies etc), you need to connect small antennas.
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