FM (ultra-shortwave) is a frequency range, while FM (frequency modulation) is a type of modulation. In conventional radio use, the two terms are colloquially used as synonymous. So when the radio is set to FM, it receives the conventional FM stations.

VHF is a frequency range between 30 and 312 MHz, which also includes the "FM" radio frequencies of 87.5-108 MHz.
Therefore, the description is correct. FM is only the modulation type of the signal that is transmitted and received.

You probably meant shortwave radio, which takes place in the frequencies below 30 MHz, which you cannot receive with the crank radio.