What is T38?
T38 is a protocol that describes how to send a fax over a computer data network. T38 is needed because fax data can not be sent over a computer data network in the same way as voice communication. See How does FAX work in VOIP environments? for more information about this.
T 38 is described in RFC 3362, and defines how a device should communicate the fax data. In the picture above both the gateway and the fax machine behind the gateway would have to be capable of T38. For the G3 fax machine on an analog line, this process will be transparent. The analog fax machine does not need to know T38.
Links:
How does FAX work in VOIP environments?
RFC3362
IP PBX, SIP & VOIP common questions 
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