No Banner is pretty self-explanatory, if no banner is selected, nothing will show.
The Static Banner has a background image, an optional Title, Subtitle, and Button. This page has an example of a static banner
The Smart Slider Banner requires that the slideshow is built within the Smart Slider Plugin located in the left-hand side of the WordPress navigation. Then it is added to the banner by using a shortcode.
Here is an example of what the shortcode looks like.
[ smartslider3 slider=2 ]
The home page of this website has an example of a Smart Slider 3 slideshow. The Smart Slider 3 Plugin has so many options and creative possibilities. If you are interested in learning more about this powerful tool, you can dig into the tutorials available on the smartslider3.com website.