MacBook Air boots to strange screen showing Magic Mouse and TrackPad

Since the MacBook Air has a mouse and keyboard connected, something went really wrong with the hardware. You could reset the NVRAM and SMC, but it likely needs hardware diagnostics.

• You might be lucky if you can connect a USB mouse and see if at least the cursor works.
• Also, boot holding Command R to enter recovery mode.

It's a long shot that the above things will get you further, but they are quick and easy to try before you use https://locate.apple.com to find a service tech or call AppleCare for further diagnostics.

The graphics are telling you to turn on the Magic Mouse or Magic Trackpad associated with the MacBook. Have you ever connected one of these devices to it?

If you haven't, I have to wonder if the internal keyboard and trackpad are not connected somehow. What year is this MacBook? Is it still under warranty?

Unless you can boot to recovery and reinstall OS X, your best bet is likely taking it to an Apple Store. If it's a hardware problem, it is better to let them deal with it.

EDIT: Now that I think about it, both pictures are pointing devices, and you say the trackpad doesn't work. Do you have a USB mouse you could try plugging in? It may be that the trackpad is broken, so OS X is asking you to provide a pointing device.