So think I realized what they are talking about. For those who are confused like me.
You can either copy the instructions from each extension into your LocalSettings.php file - so for example: when you are installing Babel, can go to Babel's instructions and copy wfLoadExtension( 'Babel' ); into your LocalSettings.php file . . . and do that for each of the extensions in the bundle. (Doing this is considered the first section that you could pick from, when it says "(pick from one of the two sections)").
You can simply copy the instructions they give under the "Add/update your LocalSettings.php" header - the instructions which includes all of the lines-of-code you need to put in your LocalSettings.php. (Doing this is considered the second section that you could pick from, when it says "(pick from one of the two sections)").