Terms are the periods by which the school year is divided, and often correspond with a grading period. You should select the term that is appropriate for the course grade you are entering, based on how your school divides the school year and how your grades will appear on your transcript.
For example, if your school reports grades by semester, you would choose "Term 1" for the first semester and "Term 2" for the second semester. If you receive only a full-year grade for a course, you can choose "Full-Year."