That picture above is like looking at te guitar laying in your lap. The bottom string is the thickest and the top is the smallest string.
Strum with your right hand, hold down notes with the left hand. Unless you are left handed!
When you are making chords, you look at the chart to tell you what stings to play, and sometimes what strings to hold down. The Heaviest String is on the left of these charts. The Spaces repreent frets (There you hold your finger down in between the metal on the fretboard)
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The X means don't play the string, and a O means play the string open (without holding a finger down)
Your fingers will be assigned numbers that will show you which fingers to put down.
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The numbers on the bottom of this chart are the finger numbers you hold down.
For Example, here is G Chord:
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Reading this chart means you play all the strings and hold your fingers down in the right place.