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It means that the file already exists in the folder you are writting to. I generally say "yes". However, if what you are installing is likely to be an older file, you may wish to rename it (I think that's an option), say no, or install in a different folder for a closer look before deciding what to do.
Retired from the Sims world. Please continue to enjoy my creations. Thank you to everyone who helped -- by either giving me the tools and knowledge to create or by encouraging me & downloading my creations. The Sims community is the BEST!