In GTM (Global Traffic Manager), administrators can configure various load balancing options to manage traffic effectively. The 'Alternate' load balancing option allows for an alternate resource if the primary fails. The 'Fallback' option provides a failover mechanism to ensure continuity in case both the primary and alternate resources are unavailable. The 'Backup' load balancing option is used as an additional layer of redundancy, providing a resource to handle traffic if primary, alternate, and fallback resources fail. These configurations help ensure high availability and reliability in traffic management.