An example of an application layer is a layer that carries out the requests or functions of computer users. But this application is not usually what the user sees; it works in the background. Users generally see a graphical interface (window) where they can enter information that is processed by the application layer.
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TELNET operates at Application Layer in TCP/IP Model. It's an Application to establish a connection to TCP Port Number 23, where a Telnet server application (telnetd) is listening.
That would be layer 7 - the application layer.
Application Layer
data which an application wants to send and passed onto the transport layer
Layer 7: The Application Layer