Thanks. According to those settings, if you lose utility power, your Mac will operate using the APC's battery power until the battery dies. What would occur then is exactly the same as if you were to suddenly unplug it.
Ideally, you may choose one or more of those shut down options above. Each of them will initiate an orderly shut down of your Mac according to the values you specify.
Compare yours to the corresponding screen shot I posted on Feb 27, 2013.
Remember all of this is optional. It's up to you to decide how long you intend to use your Mac while on UPS power. It should be long enough for you to finish what you're doing so that you can save your work, and not any longer that that.