Geometries Option
As stated in the introduction, the SLF contains object geometries. In the context of ProjectWise, these objects can either be ProjectWise folders documents, which explains the presence of the Documents or ProjectWise Folders options in the Spatial Location File Creation dialog.
If the geometries in the index file represent documents, the Documents option should be turned on, whereas if the geometries represent ProjectWise folders, the ProjectWise Folders option should be turned on.
The choice between these two options is entirely dependant on what kind of object the geometries in the index file represent and it has to be set accordingly by the user.