How does this VPN service work r7009

Does the VPN client: 

1) use your router as a VPN so I can route into my home network connection

2) allow the router to connect to a VPN such as PrivateInternetAccess and then route all traffic through that?

3) both

if 2 or 3, is this the documentation?  

http://kb.netgear.com/app/answers/detail/a_id/23854/~/how-do-i-use-the-vpn-service-on-my-nighthawk-router-with-my-windows-client%3F

Thanks,

Joe