The way I read the instructions on Page 26 (have you already read through the instructions?), you can choose.
1. True first year in college: you list your AP credits as freshman year and then you may list your entire real freshman year as your freshman year - they will use those freshman courses (with grades) to determine your freshman GPA.
2. Academic status based on credit hours: you list your AP credits as freshman year and then you may decide to use the range of credits referenced (same page) to determine where to end the classes that count as your "freshman year" thus causing a shift in which classes apply to which year's GPA.