The record Delay is to adjust the latency of your sound card.
For the Loopback test:
-Create a complete new session
-Insert the I/O plugin to a mono audio track
-Mute your audio channel and speakers
-Patch a physical cable out of your interface back in. Let's say output 1 to input 1.
-In the plugin, select your output and Input and press Ping
-The Latency Offset will tell you by how much you should adjust your recording Delay.
Let's say you get +22, you will then adjust your recording delay by -22
-Don't forget to do the test again when if you change sample rate
If you have an RME card, your latency could be 0.