Multiple Conditions in Smartforms

If the following conditions were inserted in Smartforms on the same conditions tab (with an implied AND between the first two lines) like such:

COND1 = A

COND2 = B

OR

COND3 = C

Which of these would it act like

( COND1 = A and COND2 = B ) or COND3 = C

COND1 = A and ( COND2 = B or COND3 = C )