What is Pref on Synthesis Analyzer?

Can someone explain "Pref" to me on the synthesis analyzer?

Let's say we do a 80% LP/20% GP split and set the pref at 7%. Does this mean:

A) up until 7% return the LP return is 100% and GP return is 0, and after we hit 7% then the LP return is 80% and GP return is 20%

or B) Regardless of the return the split will be 80% LP and 20% GP, however the GP doesn't get to collect on the money until the returns hit above 7%

C) something else?

Sorry I'm new to understanding this. I'd love a "explain it like i'm 5" explanation of pref and hurdle on the synthesizes analyzer if anyone is willing to help

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