If i have this transition in my nfa
epsilon
( q1 ) ----------------> ( q2 )
for the alphabet {a,b}
does that mean that there is a transtion from q1 to q2 when either b or a is read as input when the nfa is in state q1? Or are there no transitions defined from q1 to q2 on inputs a and b
No. They don't consume any input. That is anytime you are in state q1
you can jump to state q2
no matter the input.