Answer:   Local transaction - means in a single transaction we can do multiple operations on a single database. To be clearer all these multiple operations use the same Adapter connection explicit commit required.
NO Transaction - Auto commit all transactions.
XA transaction - means in a single transaction we can do multiple operations on different databases. To be clearer all these multiple operations use different Adapter connection. Generally used for distributed database.
Use No transaction for select and local transaction for any DML (insert, delete, update) operations to handle the transaction boundary (via start, commit and rollback).