EDIF (Electronic Design Interchange Format) is used to exchange design information between different CAD systems. Although EDIF is currently at version "4 0 0", Electric reads and writes version "2 0 0". EDIF options are controlled with the "EDIF" preferences (in menu File / Preferences..., "I/O" section, "EDIF" tab).
This dialog controls whether EDIF output writes schematic or netlist views (the default is netlist). It also lets you set a scale factor for EDIF input.