what path to put new template in?

I just download a new template that is in a folder named "Christmas1.1" the read_me says to ftp the entire folder to my server and place it in templates. There are a couple of template dir there, which one do I put the folder in? and does it mean i place the single folder there? or do i break it up in different folder names such as; images, sidebox, buttons, etc...

pcdctr106

When you unzip it, it has a sub-folder called ItsChristmas-1.1, that
contains the folders for buttons, css, images, sideboxes, and the
template_info.php file. That sub-folder is what you'd want to
FTP to your includes/templates folder on your server.

You transfer the entire template structure to the /templates folder so you wind up with something similat to this

templates >
     classic
     Christmas1.1
     template_default

With all that is contained

Thank you very much ill do this, very helpful info.