2. Offset, or gap, refers to the amount of time that precedes the start of the mp3/song file. Adjustments are made accordingly to the amount of extra time necessary to sync the song. A positive offset, then, will add additional time at the first beat of a song. Conversely, a negative offset with take away time, causing the song to start before the first beat of a song.
In the scenario of an SM editor, negative offsets is the more common scenario. This is because many steppers might want to begin stepping at the very first beat after a portion of the song has already begun. In many cases, the mp3 file will beginning with a small/moderate amount of silence before actual music begins, so you'll most likely need to remove a set amount of time in order to have the first beat in the SM editor begin in coordination with the music. As you may be aware, FFR submissions require a 2-second addition of silence to all songs if the music ensues immediately, and if you want the step the very beginning of that song.
For Velocity's engine, the offset is applied in the same manner, except you're syncing the song if zero offset isn't an onbeat setting for you. Without my earbuds, if I play FFR on my laptop, I almost always need to use an offset of -1, because the arrows always seem late to the music - thus, I'm eliminating the extraneous amount of time that's causing my arrows to be late and out of sync.
In your example, a positive offset means that you're adding additional time, causing the arrows to arrive later than what is implied with a zero offset. Whatever way you put it, offset/gap is used strictly for syncing purposes.