This portion of the bazaar is where you can exchange Rupees for experience to level up your Characters. Take note that the amount of Rupees needed will depend on the level of the characters you're leveling up and will also depend on the remaining amount of experience needed to level up the character.
This means a LV30 character wit 75% of her experience bar filled will cost less to level up to LV31 than to level up from 31 to 32 since you have to fill the whole EXP bar. This is a good way for allowing your lower level Characters to catch up. The maximum level you can level up your characters will depend on the character with the highest level in your party.