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You're on Windows, so it doesn't "hurt" you so much, but POSIX OSs often use different folders for data and binaries of a package... and the data directory option represents the base location of QMC2's data files (there's a bit more to it with regard to package creation scripts, but I guess that's enough for an explanation ).

Those are Windows-specific options, BTW... Anna, Kaylee (and others) wanted the freedom to put the different QMC2 variants in separate folders... as per default, QMC2's "variant launcher" on Windows assumes that all three variants are installed in the same folder (which is recommended, BTW), but if not, you have to specify their locations through these options (only if you're even going to use the "variant launcher", of course).