802.11 is a wireless standard.
There are a number of different versions of 802.11, which operate at 2.4 GHz.
802.11b is limited to speeds of 11 Mbps
802.11g is limited to speeds of 54 Mbps
802.11b/g would accomodate both 802.11b and 802.11g devices. A "g" device would connect at "g" speeds while a "g" device would connect at "b" 'speeds
802.11n is limited to speeds of about 130 Mbps
802.11b/g/n would acommodate devices that were "n" capabile, "g" capable and "b" capable
There are also different versions of 802.11, which operate at 5 GHz
802.11a is limited to 54 Mbps
802.11n (5 GHz) is limited to about 450 Mbps
802.11a/n would accomodate devices that were "a" capable and also "n" capable
Looking at the chart above......
802.11 (5 GHz) settings are to the left of the - (dash) and 802.11 2.4 GHz settings are to the right
You will save yourself a great deal of time and effort if you simply select the Automatic setting, which is compatible with any 2.4 GHz or 5 GHz device that might connect.
There might be a theoretical reason or two why one would want to use one of the individual settings above, but for the other 99%, best to not worry about this.
Apple's "new" AirPort Extreme and Time Capsule only use the Automatic setting which is compatible with any device that you might want to connect. You cannot use another setting, even if you want to. Such is progress.
More info here:
List of WLAN channels - Wikipedia, the free encyclopedia