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Scheduling Snapshots

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I am a little confused about the difference between Processing options and Snapshot Options.  Because my report takes so long, I am needing the report to start generating about 4am and when the user clicks on the report it will not regenerate but pull from this snapshot.  So i have set the processing options below....  Is it also necessary to set the snapshot options.  From what i am reading there are 2 functions...  One function for creating a snapshot and rendering it when the user clicks the report (using processing options).  And using snapshot options will store the pre defined number of snapshots in the database and you will be able to pick what snapshot to view from history.

Since i dont care about historical snapshots just the most recent snapshot should be returned I have configured the processing options below,  I just want t make sure i am understanding the difference between the two snapshot methods. 



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