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Basically correct.
But, sometimes it’s a question of trade in, in many businesses its’ acceptable levels of 99% accuracy instead of 100% in the OCR and/or one does not want to see bad recognized words/letters. In those circumstances it’s chosen one of the first 2 options.
The 3th gives also and directly the smaller file, as what you get mostly is just pure text (with some formatting) and not a bitmap image.
I also advise you to use the option Advanced, Pdf Optimizer instead of the option you are using, as here you get much better control to the output.
Also you have in this option in the up corner the button Audit space usage that permits you to see what is taking the space in your PDF.
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