lane rotation

Is it possible for the rotation to be anything but?
1 rotates to 2
2 rotates to 3
3 rotates to 4
4 rotates to 1

Could it be ?
1 rotates to 3
2 rotates to 4
3 rotates to 2
4 rotates to 1

Yes it's possible:

I am able to change these settings to the setting you show but it has no effect on the rotation. Drivers still rotate from 1-2, 2-3, 3-4,4-1.

The "new" settings only are applicable whenever you start a new race. On the active race the changed settings have no effect.

Also if you use the heat editor and hit the "Generate" button then Pc lap Counter don't take care of your rotation setting.
If you want to use the heat editor and make special rotation then you have to prepare all the heats in for exemple Excel and use the import functionnality of the heat editor.