Several artists have written to say that their own website hosting service will not allow them to create new folders. If that is your situation, then you can skip that step.
However, you must follow the next step, which is to name your image "jolafpic.jpg" and keep it within the defined size limitations.
You can then upload jolafpic.jpg to the top level of your directory, so its location would be:
http://www.YOUR-DOMAIN-NAME.com/jolafpic.jpg
Please be very sure to tell us that it is at the top level!!