These three options are explained on the page you linked to :)
Option 1 - Instant Ubuntu VMs - is intended to use with Multipass, a system that manages virtual machines on your computer in a way similar to cloud environments like eg. AWS cloud. So you can quickly deploy new instances of Ubuntu virtual machines on your computer in a similar way you do it in the cloud. However, this supports only the listed hypervisors: Virtualbox, Hyper-V (Windows), HyperKit (macOS) or KVM (Linux) - not VMWare/vCenter - so you cannot use that option (plus you need to have Multipass installed on your physical server).
Option 3 - Automated server provisioning - is intended for use with MAAS, a system that automates and manages installation of operating systems on bare metal servers in a data center. Since you want to install a virtual machine, not a bare metal server, you cannot use this as well (plus, if you wanted to use it, you would first to have MAAS installed and working somewhere, so it's definitely an overkill for installing a single server).
Option 2 - Manual server installation - is just for all other cases, ie. for "regular" installation. So download the ISO, and you are good to go.