Achievements are a way to set specific targets to users
Goals are a way to set objectives for someone to work towards. Each goal can be broken down into smaller sets of targets, and each target can have an achievement attached to it in order to make it specific.
When adding a target to a goal you then have the option to add achievement which will give you a further set of options to choose from.
What do you want to achieve
This displays a list of all of the event types which the the owner can have on their timeline. Selecting one or more from this list means that these will be the types of event which the user should be linking to this goal in order to demonstrate progress against it.
How many do you want to complete
This is the number of different events that the user should link in order for this target to be considered complete.
How would you like to record progress
Here you can choose for events to be automatically linked every time they are created onto the user's timeline, or for the user to have to manually link when creating new events.