PI Tags are where the data is stored in PI Data archive. PI Element is just used to Map this PI Tag to more user friendly Hierarchy as per user requirement. You can change PI Element position or reference without effecting the PI Tag or link the PI Tag to other PI Element without any data loss.
You need a PI Tag for writing data. Then link the same to any element as needed.
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As Krunal Lokhande exaplined real time data from the PI UFL Connector needs to be stored in PI Points. You can find more information on this in the user guide:
For example on page 37:
Hope this clear things up!
sorry for the late reply. With the UFL connector you have two possibilities:
1) Write data to PI Points and possibly automatically link those points to an Element in AF as PI Point Data Reference
2) Write data to static attributes of an element in AF
Let me know if you need more details. Best rgds, Martin H.