Core decks vs extensive reading

I don't understand that "import" folder. What is it for? Do you need to create some sort of folder like that as well? I'm confused.
(I've managed to find collection.media though, so it might work.)

EDIT: It does work now. Thanks a lot for the screenshots, I probably wouldn't have been able to set this whole thing up without them. That being said, I'm still confused, because I have no folder under filename and I don't know if that matters.