Inter-Word employs a sort of "line of vision" which can take a bit of getting used to. The cursor never moves up or down the screen, it is always on the same line. Instead, the text scrolls up or down the screen in relation to the cursor line, which may be set by this option. The higher the number, the nearer the bottom of the screen the cursor line will be and so the more of the text before the current cursor position will be visible.
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