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Uh-oh, you have no server, you are using Google's very own Blogger (blogspot.com) tool. Did they not think this through? Why ask someone you know ahead of time to install files on a server they know you don't have?
Ah, but they half did, yet did not tell you this clearly. The two files they asked you to upload, are
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The next step is to add a sidebar widget (click "Add") and then select the "HTML/Javascript" widget. Name it whatever you wish (maybe "Google Friend Connect"? maybe something more snappy and relevant to your site "Kelly's Cookers" or "Natmosphere" if you were to have a Washington Nationals blog, hint hint).
Make sure you check the width of the widget when you create the code within Google Friend Connect. I had to play with a number of widths to get it to fully fit.