To add to what Lisa said, the reason why the "keyword affiliate link" option is available is if an affiliate wanted to link his/her CPC ads directly to the merchant.
Most of the links available, ones that say "Visit Blabblah.com today and get 50% off" are meant for an affiliate to put on the affiliate's website.
But if you wanted to set up an affiliate link that directly links to the merchant's website, then you can use the "keyword link".
This link, then, would be entered in the the "destination url" of your CPC ad.
I know it sounds a little confusing, but hopefully it makes sense.
Sherif
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