If the failsafe clears (throttle climbs back above 975) the copter will remain in its current flight mode. It will not automatically return to the flight mode that was active before the failsafe was triggered. This means that if, for example, you are flying in stabilize mode when the failsafe is triggered, and this causes the flight mode to change to RTL or LAND, if you wish to re-take control of the copter you will need to change your flight mode switch to another position and then back again to Stabilize.