Below is an explanation of each folder included within the .ZIP file you just downloaded:

html/
Contains the HTML files, and GIF/JPG images required by
this template. This is the actual template you will edit
and upload to your website.

psd/
Contains the Adobe Photoshop .PSD source files for this
template. You can use these files to make changes to the
overall design of the template, but you do not need to
upload them to your website.

[wpshopgermany product="88" template="downloads.phtml"]