How To Delete User Account?

When we are deleting user accounts … after the first steps are done they will ask us with 3options to select
1) Save the home folder in the disk image
2) Don’t change the home Folder
3)delete the home folder
I don’t know what to choose probably must be the 3rd one.. “I need to delete everything from the mac relating to that user account is it the 3rd option in my case… If so please explain all of these three options in simple words to understand please.. Thank you
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Dineth Gunawardana