The proof CD will include all of the images taken during your session. 

Yep.  Every single one of them in high-resolution .jpg format.

Edited or Unedited.  Which is the better choice for you?

An unedited proof CD will include all of the pictures "AS IS" direct from the camera. 

An edited proof CD will include all of the pictures with enhancements as needed.  Please see the samples below: