Read list activity

[KD1]

Hi Adobe team,

In read list activity, select list to use tab I can see three options

1.Specified explicitly

2.Name computed by a script

3.Folder and name computed by a script 

After clicking on Name computed by a script, not able to understand below options

1.In  the folder

2.Label (computed)

3.List template- 

Similarly for folder and name computed by a script.

I understand list update activity, but not able to understand what option 2 and 3 does in read list. I read the document but didn't understand.

Kindly help 

Thank you.