Time Machine - "Inherit Backup History" - what does this mean?

I just bought a new iMac and moved all of my data from my old iMac to my new one, using an external Time Machine drive and Migration Assistant.

I've been prompted with this question - Would you like this computer to inherit the backup history from My iMac on the Time Machine backup disk?

It then says, "The backup was created on a different computer. If you inherit this backup, it can no longer be used by the original computer." The options are "Don't Back Up Now", "Create New Backup", and "Inherit Backup History."

Does "Inherit Backup History" mean to treat the new iMac as if it were the original iMac and continue to backup where it left off? It sounds like Create New Backup means to separate between "old iMac" and "new iMac" backups, where as Inherit Backup History sounds like an option to continue where I left off, as if the new computer was the old one. Is that correct?