The board sends two kinds of message, namely the confirmation token a new account needs and the notification about a reply, and it sends them over email or over XMPP depending on what the recipient's address is.

Targets are defined in the board's configuration file, each with an ID, a type and its credentials, and these two pages are where you decide which of those targets is used for which kind of message:
The split matters because the address decides the route. A user who signed up with a JID is written to over XMPP whatever the email target says. A board that accepts both address types needs both targets pointed at something, while a board that accepts only one needs only that one.
Where no target is picked, the board falls back to a debug target of the matching kind wherever the configuration file declares one. Where it declares none, which is how a live board should be configured, the board sends nothing at all. A sign-up then produces an account whose token never arrives, leaving it to you to confirm that account by hand in Users, which is workable on a closed board and a nuisance on an open one.
The page itself: Administration → Communication