Template Tab
The template tab allows you to select a specific template for your site. You can also customize the template with things like your logo, a header image, favicon along with what to show. The enabled tick on the left hand side shows you what template has been selected, you can click on the preview to see a preview picture of the template.
Settings
The settings link on the righthand side allows you to change the settings within the template. By default the following settings can be changed;
Logo
Select a logo picture that is displayed on your site, this is usually at the top lefthand side.
Header
The header is usually below the navigation bar.
Icon
This is the favicon for the site, this is shown on the tab inside the browser and on google pages. Usually it is a maximum size of 32 by 32 pixels.
Options
The options allow you to enable what is displayed and what isn't. For example, if you want the navigation bar enabled, whether to show the logo or menu. Whether to show the header and any page info/meta. You can experiment by using the preview tab each time you make a settings change here.
Enable
The enable link on the righthand side enables the selected template. Note: If you change from one template to another, your settings will be reset.