The other is for any code unit that won't decode you emit U+FFFD the Unicode Replacement Character and then you carry on decoding.
For humans U+FFFD makes it obvious something is wrong, it's typically visualised as a black diamond with a white question mark. And for a machine it shouldn't match parsing rules, it isn't an alphanumeric, it isn't any of the common separator or spacing characters, so it's unlikely to be of use in an attack.