I have just started working with Room and although everything seems to be pretty intuitive I currently don't really understand how exactly I could handle relationships.
Because SQLite is a relational database, you can specify relationships between objects. Even though most ORM libraries allow entity objects to reference each other, Room explicitly forbids this. Even though you cannot use direct relationships, Room still allows you to define Foreign Key constraints between entities.(Source: https://developer.android.com/topic/libraries/architecture/room.html#no-object-references)
You can use @Relation
annotation to handle relations at Room.
A convenience annotation which can be used in a Pojo to automatically fetch relation entities. When the Pojo is returned from a query, all of its relations are also fetched by Room.
(Google's document has confusing examples. I have written the steps and some basic explanation at my another answer. You can check it out)