There are three considerations to be made:
Step 1: Campaign Step
Step 2: Sending Options
Prefer contact's timezone tells the system to only send messages out on the recipient's timezone, rather than your own.
If in Step 1, you selected 14.00 - 19.00, this time window will now be applied for each recipient's timezone, not your own.
A recipient in London, England will receive the email at 14:00 BST
A recipient in Houston, Texas will receive the email at 14:00 CST
A recipient in Manila, Philippines will receive the email at 14:00 PST
A recipient in Sydney, Australia will receive the email at 14:00 AEST