Okay, great. What creates the website? Is this the wordpress template? You basically purchase this, then upload it to the host to get the website, then it incorporates wordpress to update the content?
Which plan do you have on hostgator? Their rates seem to be reasonable.
Please don't take this the wrong way, but I don't think this is the way to go for you right now. Creating a website isn't hugely technical, but it is a technical process, and you don't seem to understand even the basics. You're better off finding a service who can do everything for you. There are plenty of little things that might trip you up along the way if you try to do it yourself, you'll spend frustrating hours or days on things that would take someone with good technical knowledge minutes.
To answer your questions though:
- The web host sets up your account
- You do everything else
- Wordpress can be autoinstalled on HostGator
- I use an old plan on HG, roughly equivalent to Baby, but the smallest one should suit you.


