You will now see your duplicate layer appear in the Layers Window.
The Layers Window in close up. Notice the "eye" icons in the boxes to the left of each layer? These indicate that that particular is visible at the moment. You can click on them to turn them off and on, though if you click one off at the moment, the image will not look any different as both layers are identical. If you click them both off then the image will disappear leaving a blank background until you switch them on again. The blue indicator bar on the top layer box indicates that this is currently the active layer, the layer that you are working on. Any changes that you make will only take place on this layer. 
Click on the eye icon on the top layer to switch it off, then select the bottom layer as the one you want to work on by clicking on it's name, in this case "Background". The blue indicator bar will now be in the lower box to indicate that this is now the active layer.
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