No, it does not include the ball.
After an official marks forward progress (FP), the U places the ball such that the tip of the ball is parallel to the FP. The rest of the ball lies in the offensive backfield. So, from that tip, to 1 yard in advance of that tip, is the NZ.
If on 3rd down (remember we only have 3 downs), the LTG is not reached, the R is to rotate the ball 180 degrees so that the FP mark remains the same. In reality, it is the U that does this.
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Pope Francis
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