With NOFOLLOW, Google bot will not try and follow any link on this page, hence these pages that the current page links to will not be included in Google index, unless they can be reached (by Google bot) in other ways.
Beware that the snippet in the question uses the wrong name for this META tag. ROBOTS needs to be in its plural form, not ROBOT. While upper/lower/mixed casing doesn't matter, I do not believe the bots will try both names.
BTW, is equivalent to
And, yes! The rest of the web site will be indexed by Google as normally, unless of other bot exclusions.
The official word on the way Google bots interpret the META tags can be found
on the Official Google WebMaster Central Blog