This image is to show you the folders in your WordPress install at the server. You will need to locate the "themes" folder inside the "wp-content" folder. That's where to upload the theme folder. Note that the wp-content folder will be all your "stuff." The other folders are what make the site work, while your content, images, posts, themes, widgets, etc. are all in the wp-content folder.
You won't crash your site placing the theme in the wrong place, but you won't be able to activate it either.