Reset can be done in Settings / General / Reset / . It does not remove apps or other content from the phone. Restore is different: can only be done when connected by cable to iTunes. Restore reinstalls the operating system entirely. If you choose "Restore from Backup" it will put all your apps, content, and settings back exactly as they were. But if you do that, some bugs that were eating battery can survive the process. Restore as New Phone makes you add all the apps and content back yourself, manually. You are likely to get a cleaner phone without the bugs you had before. But it is labor-intensive.
The easiest way to do a Restore as New Phone is to take screenshots of your apps and put them into iPhoto or somewhere you can refer to them after the restore is done. Once the operating system is installed in the phone, with the phone still plugged into iTunes, just go the Apps tab in the Phone view, and select the apps from your list that you want to reinstall, then arrange them on the phone's home screen using your computer screen. Takes about an hour to do 100 or so apps. Then in the other iTunes / phone view tabs tell it what playlists / other content to put back in the phone. It is not difficult if you use iTunes, rather than trying to do it on the phone.