queue (ku), n. a line of persons or things waiting to be served or brought into service

Any requests in excess of these settings will wind up waiting in line, or queued.

If you've limited yourself to 1 incoming file transfer at a time, and you already have 1 such transfer occurring, further incoming file transfer requests you make will be queued locally (in other words, your system will remember your requests and make each wait its turn, before the request is sent out to anyone).

If you've requested more than n incoming transfers at a time from the same source, and that source has limited her "Max uploads per user" to n, your excess request(s) will show up on her screen and wait in her (remote, to you) queue. Please note that, to some sharers, this can make you appear greedy, or at least as if you are asking impolitely, so you might want to restrain yourself when it comes to asking for too much at once from one person. My advice is to just queue them up locally. You'll generally get them just as quickly, and it is better received by the person who's sharing with you, to whom it will not seem as if you are trying to hog too many of her resources.