You seem to have only two Options -- amount and grind -- so you'd only give Option 1 Name and Option 2 Name, then leave Option 3 Name blank, and below that leave the Option 3 Value position blank on each Variant's line. For instance, your Variants lines could look like this:
PR-10oz-WB,8.99,10.0,,10oz. bag,Whole bean,
PR-10oz-Grd,8.99,10.0,,10oz. bag,Ground,
PR-6x10oz-WB,47.94,60.0,,6x10oz. bags,Whole bean,
PR-6x10oz-Grd,47.94,60.0,,6x10oz. bags,Ground,
PR-5Lbs-WB,49.99,80.0,,5lb. bag,Whole bean,
PR-5Lbs-Grd,49.99,80.0,,5lb. bag,Ground,
Here I am presuming you will not be using Inventory Control to prevent overselling, so I have skipped over the Stock position on each line.
The name of the packaging type you select in the product's shipping options doesn't affect anything unless you are using cost/weight settings for each shipping package type in Admin > Shipping. The package names don't mean anything; they're just handier to keep track of by names, rather than if we'd called them Container type A, Container type B, etc.
The packaging type and capacity would affect how many separate parcels are calculated, which may affect USPS/UPS live rate lookups (e.g., a shipment with 6 items in one container would be cheaper than sending those 6 items as 6 separate parcels). More info on Shipping calculation is available on this help page:
http://www.e-junkie.com/ej/help.shipping.htm