F1 is your set temp, you want that at whatever you plan on fermenting at.
If you have a good trusted thermometer, use that to set your calibration temp if you feel it's off. Mine was pretty much dead on.
I can't remember which is which, but I set the compressor delay for around 5 min, and the temp variance at 0.3. The variance can change depending on how stable your temps are though, so your best bet is to mess with it and see what works for you.