Newbie mindboggled a bit

Apologies in advance if this sounds dim.

I’ve just bought and installed a WD My Book 1T Essential and loaded the firmware and software updates. I then selected Backup and it appears to be backing up a load of files.

Q: But where to?

The purpose of buying the drive was to shift files and stuff from my C drive  but the Retrieve folder seems to be on the C drive thus saving me no space.

Q: Is this true that all the files are remaining on the C drive in the Retrieve folder?

I did drag and drop one file onto the F drive. And, halleluia, I can actually SEE it! :*)

Q: I gather the E drive is just read only - so is that all wasted space?

The backup is still continuing but I still cannot see any of my files on My Book. :*(

Q: Will they be easy for me to see?

I do hope someone can help me as I am currently in techno hell and don’t want to add to my punishment.

Many tas, Euphrosene