If you press this you get a screen with an explanation and a single button "Reset blockchain and transactions'.
Screenshot: http://multibit.org/postImages/resetTransactions.png
When you click the reset button it does the following:
1) Removes any transactions from the active wallet
2) Redownloads the blockchain from before the earliest transaction in the wallet.
Since this button will only affect the active wallet but the screenshot does not give a hint which wallet is the active one:
Can you add some additional information about the active wallet?
Or place the button in a screen with which intuitively implies which wallet will be affected?
Or a combination of both, say in a confirmation dialogue asking
'Do you want to reset the blockchain and transactions in wallet {1}'?
Would this also be a solution to import keys from another wallet?