The K-728 Transfer Valve includes an internal plug that creates three ports inside the valve. Removal of that plug will change the valve from a three-way valve to a two-way valve. The NPT plug that is in the center of the brass body of the transfer valve separates outlets B and C for three-way installations. When this plug is removed, it creates the connection between the two allowing either or both to be used for the secondary function.
Kohler recommends to use a large head screwdriver that fills the slot in the plastic internal plug to remove it from the valve body; you must also push firmly to push the plug out.