The selection allows to either use the Default config, the upcoming Filmic config or a custom config (by entering the path, either absolute or relative to bin/release/datafiles/colormanagement/).
It's currently NOT possible to switch the config in the active instance, the user has to save the preferences and restart Blender to load the new config.
Supporting config hotswapping is tricky since there are a lot of references (pointers and indices) to the config in the runtime structures which would all have to be updated as well...
The filmic config itself isn't included in the patch, it's expected to be in bin/release/datafiles/colormanagement/filmic/config.ocio.