your chosen method says "ignore intent", just target people who are located in the UK.
they say "likely located" because geo-targeting isn't perfect.
knowing these two things above...
"Your ad can appear for anyone who is likely to be physically located in your targeted location, even if she shows interest in other locations."
should make sense to you.
i answered what you are doing currently. now that you understand the settings, if needed, please restate what you're trying to accomplish.