This indicates the organizational level at which this fault policy is defined - roughly, how far down the org hierarchy from root this specific policy instance sits. Because a sub-organization can inherit the parent's fault policy or override it with its own, this level value helps an admin understand whether the settings they're viewing for a given resource actually come from a policy defined right where the resource lives or inherited from further up the hierarchy. A policy level of 0 would indicate this policy is defined at the root organization, while a higher level would indicate it's an override defined further down in a specific sub-organization.