If it's about fiction they may mean the backgound as in have you submitted this book to any publishers? Gotten a bite from any editors? Has it been turned turned down, if so by whom?
If you're not sure what something means in an agency's guidelines, the best one to ask for clarification is the agency. We will always do our best to help out, but the only way you can be 100% sure is to go to the source, especially when it's something as vague as "the background of the book." All of the suggestions offered are good, but unfortunately I think we're as clueless as you are! Let us know what you find out? I'm dying to know what they had in mind with that one.
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