Explanation:

Box 1: 300
You type 300 (%), the module triples the percentage of minority cases (3000) compared to the original dataset (1000).
Box 2: 5
We should use 5 data rows.
Use the Number of nearest neighbors option to determine the size of the feature space that the SMOTE algorithm uses when in building new cases. A nearest neighbor is a row of data (a case) that is very similar to some target case. The distance between any two cases is measured by combining the weighted vectors of all features.
By increasing the number of nearest neighbors, you get features from more cases.
By keeping the number of nearest neighbors low, you use features that are more like those in the original sample.
References:
https://docs.microsoft.com/en-us/azure/machine-learning/studio-module-reference/smote