Hello! My name is Cristiano. I'm an Independent Advisor. I'm glad to help you.
The reason why there is a 59.94hz option underneath 60hz in Windows Display Settings is related to the way NTSC (National Television System Committee) video works. NTSC video, which was developed in the United States in the 1950s, uses a color encoding system that is based on a 60hz refresh rate.
But due to some technical limitations, the actual refresh rate was a bit lower than 60hz, at around 59.94hz. This was important to make sure that the color information was sent correctly over the old analog signal.
Nowadays, we've got digital displays, but the 59.94hz option is still there in case you need to play any old NTSC-based video content. It helps to make sure that the colors and timing all match up perfectly.
So, the 59.94hz option is just a legacy option for old-school video equipment.