I will explain. Once you understand these concepts it will make a lot more sense.
If your car had only one gear and the engine was directly connected to the wheels like an electric motor, and this gear-set had a 4.0 ratio, your engine would turn over 4 times for every rotation of the wheels. If it was a 3.0 ratio your engine would turn over 3 times for every rotation of the wheels. Therefore, the higher the ratio the greater the acceleration.
This is because the engine will be at a higher RPM per rotation of the wheel and we all know that engines tend to make increasing horsepower amounts until it reaches a peak. The torque however will peak early and then intersect horsepower at 5252 RPM, but horsepower will keep climbing, on your typical v6, until about 7000 rpm.
Okay so now we understand why having a higher gear ratio results in greater acceleration.
In practical application you will have 2 gear ratios at a given time, the current gear you are in and the final gear. The final gear is the gear that sits in the axle and drives the wheels. The other gears sit in the transmission. On a rear wheel drive car, the transmission is connected to the axle by a drive-shaft. The axle contains the final gear.
If you just adjusted the final gear, you can make a pretty big difference to all the gear ratios because it effects all of the gear ratios that go into it.
Using the graph that is displayed in the adjustable transmission screen, you can look at the slope of the diagonal lines. A greater slope means that the gear ratio is greater. The horizontal line at the top indicates where the redline is. This is where you will shift at to the next gear. You will need to look at the specs of the car to determine where peak power and peak torque is made. This will effectively determine where your power band is. You should gear the car so that when you shift into the next gear you are exiting the power band at the time of shift and re entering it as you go into the next gear.
If you look at the "dyno" graph on the right in the main menu of the tuning screen, it shows you how much horsepower and how much torque is made at a given RPM. The steeper the slopes on this screen, the narrower that powerband is. Some cars, typically high revving motors that also have a big turbo, have a slope that is excessively steep, meaning that these are not very usable outside of drag racing, because the turbo will take time to spool, and the car will not produce any real power until very high in the rpms.
Regardless, you will be able to determine based on the specs of the car where peak horsepower is produced, then use the graph of the power curve to determine an overall rpm range where horsepower is greatest, then set your gearing in the transmission screen to maximize the time you will be driving in this peak powerband.