The AV, TV, and M modes establish how the aperture and shutter speed work to give a proper exposure or, to say it another way, determine the amount of light that hits the sensor. The white balance section determines how the sensor interprets the color of the light that hits it. Most flash is very close to the color of daylight, but there can be some subtle differences. Sometimes flash is just a tiny bit more blue than sunlight. Other kinds of light are dramatically different from sunlight or daylight, as it is often called. Incandescent light bulbs are more yellow or orange than daylight. Fluorescent lights are usually much greener than daylight. Being in the shade of a building where the light is actually spill from the blue sky, is bluer than full sun. So the white balance adjusts the what the sensor is supposed to see as pure white or pure gray rather than having some degree of color tint.
I hope this helps.