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"Selection" is the actual items that are _selected_ when you create the perspective. i.e. say you have clicked on 4 or 5 different contexts and then create the perspective… if you check "restore selection" these exact perspectives will be selected when you open the perspective. If you do NOT have the box checked, then going to that perspective will leave selected what you have when you invoke it (which could be other perspectives).

Play around with it a bit and you'll see.

Personally, I still think perspectives are a bit arcane. I would much prefer a smart group to perspectives. It just makes more sense to me :-/