There are 5 types of transmission available.
Normal: The stock transmission that comes with your car
Close Ratio Low: This is fixed gear ratio gearbox with close ratio gears with low gear ratio, most useful for short tracks.
Close Ratio High: This is fixed gear longgearbox with close ratio gears with high gear ratio, most useful for short tracks.
Fully Customisable Manual: Fully adjustable but still functional with Clutch and H-Pattern Shifter or if using Padel or Button shifting has a manual shift delay time.
Fully Customizable Racing: Fully adjustable and only functional shifting with buttons or paddles, very quick gear shifting.
Which transmission you have installed DOES affect the PP of your car, but for customisable gear ratios, the exact ratios and top speeds that are used has no effect on your cars PP rating.
My Recommendation: If you want to install an upgraded transmission, I will nearly always use the Fully Customizable Racing transmission. UNLESS you want your car to work with clutch and manual H Pattern shifter. In that case, use Fully Customisable Manual.
In the interest of simplicity, I rarely manually adjust gear ratios, I only ever set an Auto-Adjusted top speed (in km/h). Annoyingly this value is never shown in mp/h. To work out km/h to mp/h you can Times km/h by 0.62
140km/h X 0.62 = 86.8mp/h
I often set the top speed to be artificially high so that I am not revving too high in top gear which allows much better fuel economy, very useful in the big Money Races with high fuel usage such as WTC600, WT700 and WTC800.