So... You appear to only be looking at the datasheet for the EV-Kit. I suggest you look at the datasheet for the DS2788 itself.
I think you'll find it explains many things:
http://datasheets.maximintegrated.com/en/ds/DS2788.pdfNote that the datasheet explains how the circuit works, and what the is going on in the schematic.
As far as how do you choose a sense resistor value...
Think about the following:
What is the full scale voltage for the current measurement A/D? (Start reading on page 8 of the datasheet mentioned above.)
What is the range of current you need to fuel gauge? Most devices will never consume less than some lower limit, and will never go above some upper limit. The resistor you choose needs to allow for all those currents to be measured.
In general a lower resistance sense resistor wastes less energy, while a higher value sense resistor makes it easier to measure low currents accurately.