yes, that's it.
The version is not very important. It's what nintendo uses to know if there's an update available.
if a game has a higher version on its update partition than the one on your console, it asks to update.
most users have priiloader with update block, so it will not bother you even if a game disc have a higher version.
if you never launch a game from the official disc channel, you don't care too.
in that case, we use it to reflect the cIOS version : 21 mod 008 (d2x is a mod of cIOS rev21)
if you need to launch disc games from disc channel and you don't have an update block from priiloader, you can select version 65535, which is the highest possible value. As there's nothing higher, nintendo can't update that slot anymore.
if you want, you can install it in slot249 and replace the base56 with the base57.
lot of people use base56 because all guides tell them to, and it was decided like this because it's slightly faster than base57. but Base57 has a higher compatibility so you don't really need base56.
if you install it in slot249 you don't need to change any setting.
if you install it in slot250, you can either set the loader to use slot250 globally or individually for problematic games.