It means if you are playing on emulator, for every hard reset (i.e ctrl+R), and an extra 5 seconds to your final time. This is because playing on console you would have to watch the opening gameboy cutscene, whereas on emulator you wouldn't (therefore making emulator faster, not ideal, hence the 5 second penalty)

Note that a hard reset is different to a soft reset, which is triggered by holding A+B+Start+Select, which would not force you to watch said gameboy cutscene.

Is there any reason you'd have to hard reset over a soft reset during any of the categories?