You did not state if you have kodi 16 or 17.
17 has a different default skin that makes those instructions confusing unless you load the Confluence skin(old kodi default skin).
If you are using 17, install the confluence skin by following the instructions below, then maybe the instructions will make more sense.
*Note:
Kodi v17 has changed the default Skin (User Interface Theme) from Confluence to Estuary.
(Most users prefer and are familiar with Confluence, so most instructions are based on Confluence, so I will explain how to install and run the Confluence Skin.
(You can run any Skin you want, but I recommend Confluence for now.)
*Load Confluence Skin:
On the Estuary Home screen, there is a Settings Icon (small gear Icon) at top left.
Click the Icon. There will be a number of choices on the screen.
Select Interface Settings.
On the screen, click the line "Skin Estuary".
On the Skin Dialog box, click "Get more...".
Scroll down to Confluence, and select it.
It will download and Install Confluence Skin, then the screen visualization will change and it will ask you if you want to use this Skin. Select yes.
You are now running Kodi with the old Confluence skin.
/kens