What are the circles behind the iPhone 5?

I know one is the camera. One is the flash. But what is that circle in between them? Is it important?

Might be a light sensor

Is there a reason why you didn't look that up in your user guide?

I BET you'll now say you lost the book.

Well, you have internet access, right? And it is ridiculously easy to find information these days.
You could have just simply downloaded the PDF file.

Here, I'll find it for you: http://manuals.info.apple.com/..._guide.pdf

Try page 7.

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