Here's a brief review of the options you have selected there:
Use the default management server:
This tells the client to grab definitions from the SEPM itself, and is governed by the heartbeat interval. You cannot schedule this, it just checks for new defs from the SEPM every time it checks in. The randomisation options normally configured around heartbeats make this doubly hard to predict.
Use a LiveUpdate Server:
Pointing this at "Use the default Symantec LiveUpdate server" does mean it will grab definitions over the internet and will generate more traffic than updating via the SEPM. But, what the LiveUpdate server option gives you, is the ability to set a schedule for this update attempt, allowing you to set it well out-of-hours and potentially avoid the increased traffic from interferring with production performance.
The "Use a LiveUpdate Server" option also allows you to use the LUA, an internal repository of definitions if you so wanted.