Hi,
Yes, select None would disable Windows Update Delivery Optimization.
The options are described in the TechNet article below, just look for update:
https://technet.microsoft.com/en-us/itpro/windows/manage/disconnect-your-organization-from-microsoft#bkmk-updates
Lets you choose where Delivery Optimization gets or sends updates and apps, including
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None. Turns off Delivery Optimization.
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Group. Gets or sends updates and apps to PCs on the same local network domain.
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Internet. Gets or sends updates and apps to PCs on the Internet.
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LAN. Gets or sends updates and apps to PCs on the same NAT only.
Regards
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