Changes how corners are offset. You can see the difference between these options by offsetting a rectangle to the outside.

Sharp

Offsets and extends curves with a straight line until they intersect.

Round

Offsets and fillets curves with an arc of radius equal to the offset distance.

Smooth

Offsets and connects curves with a smooth (G1 continuity) curve.

Chamfer

Offsets and connects curves with a straight line between their endpoints.