After you download the upgrade zip file, then go download Filezilla - it's a free FTP program. (If you use Firefox, then I recommend FireFTP - a plugin that works right inside Firefox)
Before you use the FTP program, go to your hosting control panel and create a new FTP account (username and password).
Open FileZilla (or FireFTP) and create a new profile and connect to your site via FTP. You should have to enter your server information (ftp.yourdomain.com) and then the username and password you just created at your hosting control panel.
Once you connect to your site you should see the folder structure of your entire website on the right side panel. Navigate to the folder where WordPress is installed.
Now follow the instructions in the upgrade zip. All you have to do is upload all the files in the upgrade.zip folder and replace the existing WordPress files.
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