Does Istikhara mean choosing the better of two good options, or does God choose for us the absolute best based on His knowledge?

The prescribed way for the الاستخارة (prayer for guidance) is to perform it after a person has a "concern" about a matter. This "concern" is defined as: intending one of two options, or two possibilities, or resolving to do something or to leave it, such as intending to marry or to travel. Consultation should precede الاستخارة. So, if a person consults and a benefit becomes apparent to him, he then prays the الاستخارة prayer and names this matter therein.