It depends on the type of operation (merge or rebase) leading to that conflict.
In your case, a merge, where:
- current change represents what you have (the destination of the merge)
- incoming change represents what you merge (the source of the merge)
Then:
- Option 1 (“Accept Incoming changes”) would ignore completely what you had, and keep what you merge.
- Option 2 (“Accept current changes”) would ignore completely what you merge, and keep what you had.
Don’t forget, in case of a rebase, “what you have” and “what you merge” are reversed.