Coins are not 'printed', they are minted - or more accurately coins are 'struck'.
But anyway, even though the image is way too small for proper evaluation, I will go out on a limb and say that the 'N' is just damaged from circulation hits.
Incuse marks are damage into the coin. It is were a die issue the affected area would rise above the other devices. So the reduction is just damage to the coin.
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