Documentation For Usage Unclear

[Joseph-Cardwell]

I'm relatively new to this code set. Once I get to the Configuration and Usage section of the readme, the instructions become...cryptic.

when it says

module.exports = {
  localNetworksConfig: '~/.hardhat/networks.ts'
}

does this mean something like the following in my hardhat.config.js file?:

module.exports = {
  solidity: "0.7.3"
  localNetworksConfig: '~/.hardhat/networks.ts'
}

Where does this go?

export interface LocalNetworksConfig {
  networks?: NetworksConfig
  defaultConfig?: NetworkConfig
}

Where does this go?

{
  "networks": {
    "rinkeby": {
      "gasMultiplier": 2,
      "accounts": ["0x12..56","0xab..cd"],
      "url": "https://rinkeby.infura.io/v3/<API_KEY>"
    },
    "mainnet": {
      "accounts": ["0x12..56","0xab..cd"],
      "url": "https://mainnet.infura.io/v3/<API_KEY>"
    }
  },
  "defaultConfig": {
    "gasPrice": "auto"
  }
}

Sorry for being a newb and asking the first stupid question. Maybe adding specifics like these to the readme will help script kiddies like me in the future.