Setting a Windows 10 computer to 'Standby' mode (also known as Sleep mode) allows the computer to enter a low-power state while preserving the current session in RAM. This enables the user to resume work quickly, as the system can wake up faster compared to other power saving modes such as Hibernate, which completely powers off the system after saving the session to the hard drive. The incorrect options presented here, such as 'Shutting down applications' or 'Restarting the computer', involve closing programs or rebooting, which are not characteristics of Standby mode.