Yes that is correct.
I will use one of the examples from the Read Me help text on the Add|Exclude Other Folders & Files page. If you had a folder named “orange” and you want to monitor and protect all files in the “orange” folder then you would use the Add Folders & Files tool to add this non-WordPress folder and non-WordPress files to be monitored by ARQ.
Add Top Level Folder option
This tool is ONLY for adding static files or static files that are dynamically updated – See NOTE above. Best Recommend use is to select the Add Top Level Folder option to add an entire non-WordPress folder to backup and to be checked by the ARQ Cron. Example: You have a Top Level non-WordPress Folder named orange. The folder path is /xxxxx/xxxxx/orange. You would select the Add Top Level Folder option and then enter the folder path to this folder /xxxxx/xxxxx/orange in the Enter an Add Folder or File Path text box and click the Add button. Additional Add options are Add a Specific Folder and Add An Individual File.