Timer 0 can be incremented from 1 of 2 possible sources -
An external pulse on pin T0CKI (operates as a pulse counter in this mode)
The internal instruction clock (operates as a timer in this mode)
Bit T0CS in the OPTION_REG register sets the Timer 0 Clock Source. 1 = Pulse on T0CKI pin while 0 = Instruction Clock.
Bit T0SE in the OPTION_REG register sets the Timer 0 Source Edge when using T0CKI as the Timer 0 Clock Source. 1 = Increment on Rising Edge while 0 = Increment on Falling Edge. This bit is ignored when bit T0CS is set to use the internal instruction clock.
When using the external pulse on T0CKI, this does not mean that the signal present on T0CKI is at the same frequency as the internal instruction clock.