Hi Brenden,
It seems that FB changed their policy once again and if you grant your app with the read_insights permissions, they want to know exactly how it is going to be used. Firstly, keep the "Integrates Facebook Insights for an app, Page or domain into a third-party analytics tool" option selected. Then you need to write exactly how a user gets to the Insights tab of the Facebook application in Kentico. Then you will need to record a video screencast showing the process of using Insights in Kentico (the Facebook application -> Insights tab). Finally, you will need to create a user account for FB employee to log into Kentico and review it. As strange as it sounds, this is the newest FB policy.