Notes:

So basically Brazil's southernmost state, Rio Grande do Sul, has an unique regional identity and Its culture was influenced by the Argentinian and Uruguayan gauchos (south-american cowboys). The striped flag was used by the separatist rebels in the 19th Century (see Ragamuffin War) and the blue one with stars represents the Southern separatist movement. The guy in the right is Bento Gonçalves, leader of the rebels and President of the Rio-Grandense Republic. Most of the jokes will probably only be undestood by Gaúchos (how people from Rio Grande do Sul are called) and Brazilians.