Use these options to set what happens when you select Edit > Parent. See also Parent or Unparent objects and View and edit the hierarchy of nodes.
Select what you want done with the selected object:
Move the object from its current parent to the new parent (the last selected object).
Create an instance under the new group instead of moving the object.
Turn Preserve Position on to preserve the overall world-space position by changing the parented objects’ transformation matrix.