when the assignment talks about sending the pages to a product folder, do we need to create a folder with pictures in it that are the links to the products? 

I am not sure what this instruction is saying: Code the description for each product as a link to the page for that product. You can use any names you want for these product pages, but the pages should be stored in the 15 Halloween exercises for products folder. (The exception is the page for the deranged cat, which should be named cat.html as indicated in exercise 9.)