Settings section in Synchronize your changes page allows you to specify how the synchronization job should work if your files are out of date.
Consider a team is working on a single project where each team member has local copies of models. And the versions of those files could be different. While one is synchronizing data, an iModel can contain conflicting changes made by another team member. In Local files out of date option, you can specify how synchronization should proceed in such a case.
Options: