LED is the type of backlighting used - it used to be CCFL (cold cathode fluorescent lamp) but that has been mostly superceded by LEDs as they're less prone to dying, last longer and use less power. Don't generate as much heat, either.
I didn't realise they made monitors specifically at those sizes - thought they were all basically televisions. I doubt you'll be able to tell the difference between 5ms and 6.5ms, but the manufacturer specs there are often "best case" scenarios and frequently seem to be figures invented at random.
Refresh rate is up to you, to be honest. In terms of 'refresh' it's all pixel response times anyway. 120Hz if you may want to try 3D out.
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