Either would be fine. Their kit theory is that the grains will go through different "rests," including a protein rest and a saccrification rest. Many homebrewers will hold their mashing and soaking grains between 145f and 155f to maximize the saccrification rest, and this is fine. By allowing the grains to heat up to 170f, you can extract more sugars but you run the risk of to potential problems at higher temperatures above 165f: 1) Tannin extraction, as high temperatures on the grains will extract stringent tasting tannins and 2) above 168f, the grains will begin binding sugars instead of releasing them into the wort water. This halts sugar saccrification and can cause you to miss your gravity numbers.
If you're not sure about the process, simply bring the water up to 165f and then add the soaking grains to the wort water in a grain bag. The grains, when added, will bring the temperature of the water down by about 10 degrees to around 155f almost immediately as they absorb the water and begin their soak. Hold the 155f temperature for a nice long soak. Minimally 45 minutes and optimally about 90 minutes (120 isn't unheard of, either). While the grains soak, conduct your own "sparge" by lifting up the grain bag so the sweet wort sugar drains out, then dunk the bag again. Repeat the "sparge" every 15-20 minutes or so to extract as much sugar as you can.
When you're done with the steeping grains, I tend to remove mine to a big sanitized bowl or a colander with a bowl underneath it. This will help the last of the wort to drain out and you can pour the extra cup or two of sweet malt wort back into the boil after a half hour of draining or so.