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The extract mentioned there is to take an extract of the data from the live connection to your Tableau Server. If you are connected to our live Tableau Server data source and you are publishing to Server then keep this option 'live'.
Details are in the documentation - Connecting to Data Sources
I hope that helps
Thanks so much for your reply. When you said that to take an extract of the data from the live connection to the tableau server, Does that mean when the user wants to extract the data from tableau server to the local workbook,he/she can click the extract button to get the extract data.
After that ,the extract data is going to embed the data in the local workbook instead of connecting to the tableau server. In another word, if the user wants to connect the data to tableau server, it will always live.
What happens to us is that the tableau developer publish the extract data source ( which originally come from Oracle), the power users connect to the tableau server to get the data source but they want to have the extracted data. Can they do that?