I love when the priest included a diagram of the Consanguinity or Affinity in the Catholic Church marriage diligence. In this case the issue is one of Affinity not Consanquinity. Affinity refers to familial relationships created through marriage; the relationship a person has with the blood relatives of their spouse.
Here the couple who would like to be married demonstrates the complexity of the affinity. The married is for Don Jose Quebedo and Dona Eusequia Sanchez.
Don Jose Quebedo is the uncle “tio” of Dona Eusaquia Sanchez. Don Jose Quebedo was married to Dona Anna Maria Sanchez (who is listed as deceased in the marriage dilligence). Dona Anna Maria Sanchez is the daughter of Don Diego Sanchez, grandfather of the bride Dona Eusaquia Sanchez, and the sister of Don Manuel Sanchez, father of the bride Dona Eusaquia Sanchez.
In short, Don Jose Quebedo is requesting church permission to marry his niece.
